The all-share deal between the LSE and Canada's TMX group, which formed a strategic partnership in 2009, is being billed as a merger of equals, but LSE shareholders will own 55% of the combined group.
Shares in the LSE jumped over 10% in early trading, valuing the combined company at around �5bn.
It will be headquartered in London and Toronto and run by the LSE's chief executive Xavier Rolet from London. The new chairman is TMX's Wayne Fox while the LSE's chairman Chris Gibson-Smith and his deputy Paolo Scaroni will serve as deputy chairmen of the combined group. Thomas Kloet, chief executive of TMX, becomes president, based in Toronto.
Rolet said this morning: "This is an incredibly exciting merger with considerable growth opportunities. We are creating the world's largest listings venue for the commodities, energy and natural resources sectors, as well as the premium market for small, mid-size and growth companies."
The new transatlantic group will be the largest bourse for trading in mining, energy and clean technology shares. Most of the world's mining firms are listed on the 150-year-old Toronto Stock Exchange, although the largest miners are listed on the LSE.
The merged group will also be the world's largest exchange by the number of companies traded. However, by market value it will rank seventh, behind rivals such as NYSE Euronext, Deutsche B�rse and Chicago Mercantile Exchange Group.
The deal comes after years of speculation over the future of the LSE, which has fought off advances from various predators, including Deutsche B�rse, Sweden's OM Exchange, Euronext, Nasdaq of the US and Australia's Macquarie Bank.
