TMX Group operates the Toronto Stock Exchange.
The London Stock Exchange Group (LSEG) and TMX today said the all-share merger will create a major listings venue for natural resources, mining, energy and clean technology firms.
Following the deal, which is expected to be complete in the second half of 2011, LSEG shareholders will own a 55 per cent stake in the merged entity, while TMX shareholders will hold the remaining 45 per cent.
The merged bourse will have over 6,700 companies listed on it, with an aggregate market valuation of around 3.7 trillion pounds, the two firms said in a statement.
"We are creating the world's largest listings venue for the commodities, energy and natural resources sectors, as well as the premium market for small, mid-size and growth companies," LSEG CEO Xavier Rolet said.
There has been a wave of consolidation among leading bourses worldwide in recent years as entities look to boost their business activities in the growing securities market.
The merger comes in the wake of the Singapore Exchange's over USD 8 billion takeover bid for the Australian Securities Exchange in October last year.
LSEG, which itself has been the takeover target on many occasions, snapped up Borsa Italiana last year.
The merged group -- of LSEG and TMX -- will be jointly headquartered in London and Toronto and the entity's CEO will be based in London.
"We will also be uniquely positioned to offer high performance, low-cost technology solutions to our exchange clients around the world," Rolet said.