DUBAI (Zawya Dow Jones)–Government-owned Borse Dubai, one of the largest stakeholders in the London Stock Exchange Group PLC (LSE.LN), said Wednesday it continues to support the LSE management’s efforts to create more shareholder value, as it ties-up with Canada’s TMX Group Inc. (TMXGF) to create a new transatlantic exchange.
Earlier Wednesday, the London Stock Exchange Group and TMX Group Inc. said they agreed terms of the tie-up.
“We have been following these developments with interest. Borse Dubai has always been supportive of management initiatives to create shareholder value in the London Stock Exchange,” Borse Dubai said in an emailed statement. “We continue to support the management in their efforts to create both a stronger platform and a more valuable enterprise for stakeholders.”

Borse Dubai owns a 20.64% stake in the London Stock Exchange Group, according to Zawya.com. The Dubai government-owned investment firm also owns a 17% stake in The Nasdaq OMX Group; a 79.63% stake in the Dubai Financial Market; and a 33.33% stake in Nasdaq Dubai.

Post transaction, London Stock Exchange shareholders will own 55% and TMX shareholders 45% of the enlarged share capital of London Stock Exchange, the holding company of the Merged group.
The new group, which has yet to be given a name, will be listed on both the LSE and the Toronto Stock Exchange and will continue using their existing recognized brand names.

The deal, which still needs approval from U.K. and Canadian regulators, comes just a week after Russia’s top exchanges, Micex Group and RTS, said they planned to merge and hold an initial public offering in Moscow in the second half of 2012.