Singapore's bourse has launched an 8.2 billion US dollar bid to merge with the ASX to create a powerful Asia-Pacific trading hub.
The 8.4 billion Australian dollar bid, revealed shortly before a briefing in Singapore, values the ASX at 48 Australian dollars a share, a premium of nearly 40 percent on the last traded price, a statement from the ASX said.
"ASX and SGX announced today... their entry into an agreement for merger," it said.
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Earlier reports said a merger would create the world's fifth biggest stock exchange and was aimed at rivalling the Hong Kong and Shanghai bourses.
The deal, which will need approval by authorities in both countries, looks likely to face regulatory hurdles in Australia as Singapore's government is a major shareholder in SGX.
But Australian Competition and Consumer Commission (ACCC) chairman Graeme Samuel did not believe the merger created any anti-competition problems.
"I think it's a matter between the Singapore exchange and the Australian exchange and I can't see that raising competition issues for us," Samuel said, according to public broadcaster ABC.
The announcement comes with the ASX about to lose its long-held monopoly after the government gave the green light for rival share exchanges to operate in Australia.
