South American stock exchanges plan corporate mergers

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Colombia’s and Peru’s stock exchanges are planning a corporate merger that would be the first ever cross-border merger of stock markets in Latin American, the two exchanges said in a statement.

The two exchanges, the Colombian Stock Exchange and the Lima Stock Exchange, have already signed a memorandum of understanding for the merger, a statement said, but both boards still need to approve the final details. The merger is expected to close in the second half of 2011.

The shareholders in each exchange would become shareholders of the new company, the statement said.

It said the companies that trade on both exchanges will all together have a market capitalization of $378 billion. The Colombian side of the merger would control 64% of the new company while the Peru side would control 36%.

Read more about this merger here

And for more information about Latin Amerian private equity, check out the Private Equity World Latin America 2011 business conference, this June in Miami, FL!