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 Cade (Administrative Council for Economic Defense), the Brazilian antitrust authority, approved the merger between the Bovespa stock exchange and the BM&F futures market, a spokesman said this week.
"It was approved without restrictions," a spokesman for Cade, an organ linked to the Ministry of Justice, said.
The merger, which was announced on April 25, would create the world's third largest bourse - after Chicago, in the United States and Frankfurt in Germany - based on total market value. It would also account for 80% of volume in Latin America's equity market, according to Bovespa.
Both exchanges will merge their shares in mid-August into a single stock, said Gilberto Mifano, chairman of the new entity, BM&F Bovespa. Management hopes the merger would generate lower operating costs, a broader client base, and the possibility for new financial products.
BM&F Bovespa would have an estimated market value of over 20 billion US dollars, only behind Frankfurt and Chicago. The new entity is also expected to attempt other acquisitions or associations in the region.
Mercopress
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