London-Toronto bourse merger off

The London and Toronto stock exchanges have scrapped plans for a C$3.6bn (£2.3bn) merger because it was unlikely to win enough shareholder votes.

TMX, which owns the Toronto exchange, said that based on votes already cast, the required two-thirds shareholder support was unlikely to be met.

The LSE said in a statement that its shareholders overwhelmingly backed a merger, based on votes already cast.

Xavier Rolet, LSE chief executive, said: “We are clearly disappointed.”

Tom Kloet, TMX chief executive, said the company will now review a rival takeover bid by Maple Group Acquisition, made up of 13 Canadian banks and pension funds.

TMX said it will pay a $10.3m termination fee to the LSE, and a further $29.8m if the acquisition with Maple goes through.