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On April 22, 2026, TMX Group Limited (TSX: X) (TMX Group), the parent company of the Toronto Stock Exchange and the TSX Venture Exchange, announced that it has entered into a definitive agreement to acquire Middlebury Holdings Pty. Limited (Cboe Australia) and Cboe Canada Holdings, ULC (Cboe Canada) from Cboe Global Markets, Inc. (Cboe) for aggregate consideration of US$300 million (approximately CA$409 million). The two components of the acquisition are expected to close separately, each following the receipt of required regulatory approvals.
Transaction rationale
TMX Group has framed the transaction as one that will strengthen its ability to serve clients across the capital markets ecosystem, expand its global presence and accelerate its growth strategy, whilst reducing cost and complexity for Canadian market participants. In particular, the acquisition of Cboe Australia is intended to bring together what TMX Group describes as the world's leading mining and energy transition financing ecosystems, given Australia's position as the second-largest mining resource market globally. The acquisition of Cboe Canada is expected to enhance the quality of client experience across domestic equities marketplaces by increasing the efficiency of access to capital and liquidity for Canadian issuers and reducing direct and indirect costs for participants.
From Cboe's perspective, the sale marks a significant milestone in a strategic realignment announced in October 2025, when the company indicated it would explore a sale of its Australian and Canadian equities businesses to sharpen its focus on core strengths and emerging opportunities, including derivatives, digital assets, tokenization and prediction markets.
Target businesses
Cboe Australia and Cboe Canada both offer equities trading venues, listing venues and market data solutions. Cboe Australia is a securities exchange offering public market listings (including ETFs), structured products and warrants, and was recently granted a licence for corporate listings. It currently handles approximately 20% of market share for total dollar turnover in Australia, competing with the incumbent ASX Ltd. Cboe Canada includes the MATCHNow, NEO-L, NEO-N, and NEO-D trading platforms, as well as ETF, CDR, and corporate listings. Cboe Canada's platforms handled roughly 12.5% of Canadian equity trading volumes during the first three months of 2026.
The combined businesses delivered revenue of approximately CA$87 million in 2025 and adjusted EBITDA of approximately CA$25 million. The purchase price of US$300 million is notably less than the approximately US$350 million that Cboe originally paid for two separate acquisitions, MATCHNow in 2020 and the NEO Exchange in 2021, to establish its Canadian trading business.
Financial implications
TMX Group expects the transaction to be accretive to adjusted earnings per share within the first twelve months of closing, excluding synergies. Revenue growth from the acquired businesses is expected to be in line with TMX Group's long-term financial objectives. TMX Group's Chief Financial Officer indicated that the transaction is expected to be funded through a combination of available cash and new debt.
Competition and regulatory considerations
The transaction raises important questions regarding competition in Canadian capital markets. TMX Group already holds a dominant position in Canadian equity trading and listings, and the acquisition of Cboe Canada would consolidate this further.
TMX Group CEO John McKenzie has stated that the company previewed the transaction with Canadian securities regulators and that it will be submitted to the Competition Bureau for review. The purchase of each business is also subject to regulatory approvals and customary closing conditions in Australia and Canada.
Key takeaways
This is a strategically significant transaction for the Canadian and Australian capital markets landscape. Clients with interests in Canadian or Australian equity listings, trading infrastructure, market data, ETF distribution or the mining and resources sector should consider the potential implications of the consolidation of these platforms under TMX Group's ownership. The regulatory review process, particularly the scrutiny of the Competition Bureau in Canada and applicable securities regulators, will be a key factor in determining whether and in what form the transaction proceeds to completion. We will continue to monitor developments and provide updates as appropriate.
Learn more about TMX Group Limited’s proposed acquisition of Cboe Australia and Cboe Canada, here.
The authors would like to thank Diana Nakka for her contributions to this article.
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