The Canadian Securities Exchange (CSE) has entered into an all-cash agreement to acquire NSX (ASX:NSX), the owner of the National Stock Exchange of Australia (NSXA), for roughly AU$16 million.
In a Monday (May 19) press release, the CSE says the acquisition price of AU$0.035 per fully paid ordinary share of NSX represents a 59 percent premium to NSX’s closing price on May 16, the last day of trading before the deal.
The acquisition is for 95.2 percent of NSX’s ordinary shares as the CSE already owned a 4.8 percent stake.
“This transaction enables the CSE to expand its reach and builds on our success in attracting global listings,” said CSE CEO Richard Carleton. “Through our 21-year history, the CSE has grown to more than 750 listings by focusing on and supporting entrepreneurial companies. The NSXA, working with us, is poised to execute a similar plan in Australia.”
Originally established as the Newcastle Stock Exchange in 1937, the NSXA has evolved into a platform focused on serving Australia’s early stage capital market. It changed its name to NSXA in 2006.
Upon acquisition by the CSE, the NSXA will remain operated locally, with the CSE providing support while expanding its geographic footprint. The NSXA will stay under the leadership of Managing Director and CEO Max Cunningham.
“The CSE’s acquisition will provide NSX with financial strength and operational stability, and bring global expertise to local exchange activities,” he said. “That is great news for participants and competition in Australia’s capital markets.”
Earlier this year, Canada and Australia released a joint statement underlining their commitment to developing sustainable and secure critical mineral supply chains, highlighting shared values in ESG standards.
The partnership re-instills the countries’ position as global leaders in mineral extraction and critical minerals production, both essential for the global energy transition.
The CSE states that its acquisition of the NSX looks to build on the success of CSE in Canada and help provide competing exchange market services to Australian issuers and investors.
The CSE board has advised shareholders to vote in favor of the acquisition. It remains subject to the approval of NSX shareholders, the Australian court and the Australian Securities and Investments Commission.
Should the transaction be approved, it is expected to close in the third quarter of 2025.
Securities Disclosure: I, Gabrielle de la Cruz, hold no direct investment interest in any company mentioned in this article.