Brazil merger marks birth of world’s third-biggest exchange
Two of the biggest financial exchanges in Brazil have agreed a merger plan which will see the country become home to the world’s third biggest trading centre.
Reuters reports that Bovespa and BM&F shook hands on a partnership on Thursday, and have already put a board together to help run the new venture.
Both firms expect to cut their costs by around a quarter by 2010 through the deal, according to the news provider.
"The new entity said in a statement its stocks will be listed on Brazil’s New Market after the CVM securities regulator registers the BM&F Bovespa," it stated.
Stocks for both companies rose by over two per cent after the deal was announced.
Recent reports revealed that Brazil has issued $500 million (£250 million) of its national treasury securities on the European, United States and Asian markets.
Investors thinking of taking a chance on Brazil property could be encouraged by the apparent strengthening in the country’s economy, with external investment rates also expected to go up.
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