Canadian Securities Exchange to acquire National Stock Exchange of Australia

NSX Limited (NSX), the operator of the National Stock Exchange of Australia, has entered into a Scheme Implementation Deed with CNSX Markets, the market operator of the Canadian Securities Exchange (CSE).

Under the agreement, CNSX will acquire all remaining ordinary shares in NSX that it doesn't already own by way of a scheme of arrangement.

Under the scheme, NSX shareholders will receive $0.035 per fully paid ordinary share and $0.00035 per partly paid ordinary share. The offer represents a 59% premium to NSX's closing share price on 16 May 2025, the last trading day before the announcement.

NSX will continue to be operated by its local management team, but with CSE's support.

"The CSE's own journey is consistent with NSX's annunciated strategy, and this development enables the natural next step in the evolution of Australia's capital markets and NSX's growth. If approved by shareholders and ASIC, this transaction will boost Australia's market competitiveness and expand the range of opportunities for companies seeking capital to grow and investors looking for diversity to build wealth," NSX chair Tim Hart said.

Notably, NSX's board of directors recommends that NSX shareholders vote in favour of the Scheme, in the absence of a superior proposal and subject to an independent expert concluding that the Scheme is in the best interests of the NSX shareholders.

NSX managing director and chair Max Cunningham said the CSE's acquisition will provide NSX with financial strength and operational stability and bring global expertise to local exchange activities.

He said that's great news for participants and competition in Australia's capital markets.

"The Canadian experience demonstrates that one exchange size does not fit all. Issuers and investors in Australia are keen to see a dynamic alternative to the larger, legacy incumbent," he said.

"A stronger balance sheet enables NSX to expand our product offering, sharpen our customer focus, and provide Australian companies, brokers and investors liquid, reliable and well-regulated services.

"We believe in a strong, accountable and transparent regulatory environment underpinned by rules rather than opaque 'precedent-based' decision-making around waivers and other governance matters."

He added: "The journey of rebuilding NSX as a credible alternative listing venue began 12 months ago. This has resulted in renewed focus on an appropriate listings framework for small and emerging companies, revision of current listing rules, review of our technology stack and services, and a new team with extensive local and global exchange experience."

"The CSE will build on those foundations, including the completion of our tech review, and offer shared services in key areas such as technology and financial resources."