SGX Eyes More M&A for Growth
In this article (5)
Singapore Exchange will look to scale up its operations by maintaining focus on mergers and acquisitions.
SGX chief executive Loh Boon Chye said the city-state’s bourse will remain focused on mergers and acquisitions as a means of growth.
It fully acquired foreign exchange trading platform BidFX after obtaining the remaining 80 percent stake in June last year. Earlier in 2020, it acquired a majority stake in index provider Scientific Beta.
We are not stopping our M&A focus,» Loh said in a report. We have said we will bulk up and given that we are now a multi-asset exchange, one of the ways is to also scale up further. We will look at acquisitions.
According to Loh, SGX is set to achieve the 2025 target of having 50 percent of its revenue generated by its fixed income, currencies and commodities segment, alongside data, connectivity and indices, earlier than expected.
SGX continues to expand its product offering with plans to roll out infrastructure for carbon credit trading with select partners and the potential introduction this year of blank-check vehicles or SPACs (special purpose acquisition company), according to a separate report.
Questions & Answers
Q.What is SGX's primary strategy for growth?
What is SGX's primary strategy for growth?
Singapore Exchange will continue to focus on mergers and acquisitions to scale up its operations. This approach helps the company expand, particularly as it develops into a multi-asset exchange.
Q.Which companies has SGX recently acquired?
Which companies has SGX recently acquired?
SGX fully acquired foreign exchange trading platform BidFX in June last year by obtaining the remaining 80 percent stake. Earlier in 2020, it also acquired a majority stake in index provider Scientific Beta.
Q.What new products or services does SGX plan to introduce?
What new products or services does SGX plan to introduce?
SGX plans to roll out infrastructure for carbon credit trading with select partners. It also intends to potentially introduce blank-check vehicles, known as SPACs, this year.
Q.Which revenue target is SGX expected to meet ahead of schedule?
Which revenue target is SGX expected to meet ahead of schedule?
SGX anticipates achieving its 2025 target earlier than expected, which aims for 50 percent of its revenue to come from its fixed income, currencies and commodities segment, data, connectivity, and indices.
Reader pulse
Is SGX's M&A strategy effective for growth?
19,269 votes so far