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Johannesburg - The JSE's proposed takeover of the Bond Exchange of South Africa (Besa) is one step closer to reality after the Competition Commission gave the deal its blessing.
This is according to Maarten van Hoven, head of mergers and acquisitions at the Competition Commission.
"Our recommendation is for the transaction to go ahead," said Van Hoven. It will be made to the Competition Tribunal, which will give a final verdict on the matter.
The financial industry holds mixed views on whether the merger will result in uncompetitive practices, should the JSE own all the major financial exchanges in South Africa dealing with debt, equities and futures.
"The process is open and transparent," said Van Hoven. "Some participants may feel there are (competition) concerns, but principally we do not view it as competitive because the products are uniquely different."
He added that the JSE had attempted to compete in the debt markets through its Yield-X platform, but that it has been largely unsuccessful.
Debt markets have been busy in recent weeks as governments and corporates have attempted to raise capital and bolster their balance sheets.
This had prompted speculation that the transaction would not make it past the competition authorities, or that Besa shareholders might review their support for the transaction.
More than 90% of Besa shareholders had earlier given their support to the transaction.
- Fin24.com