The combined group will have joint headquarters in London and Toronto, with 20 trading platforms/markets across Europe and North America.

The two companies have a combined value of around $7.1 billion and shares of the new holding company will continue to trade on both the London Stock Exchange and Toronto Stock Exchange.

The merged group will include the smaller Alternative Investment Market in London and TSX Venture Exchange in Toronto, which cater to small-cap and early stage companies, particularly in the mining sector.

It will also include Borse Italiana, owned by the LSE.

The two bourses will continue trading under their respective names.

The combined Toronto and London stock exchanges will be the number one listings venue in the world with 6700 total listings, as well as the top market in the world for mining companies.

The merger, unanimously recommended by both companies, will target annual cost synergies of $56 million from the second year.

LSE shareholders will hold 55% of the merged entity with TSX shareholders holding the balance.

Borse Dubai is the LSE’s largest shareholder with a 20.6% stake, while the Qatar Investment Authority owns 15.1%.

Ernst & Young global head of mining and metals Michael Lynch-Bell said the merger is welcome news.

“Mining companies, who operate in what is a truly global industry sector, look for capital from global investors which is often found through the TSX [owned by TMX] and LSE,” he said at Mining Indaba in Cape Town, South Africa.

“Both have provided rich sources of capital to companies at different stages in the mining life cycle.

“The TSX has typically attracted start up and exploration companies, whereas the LSE has been the focus for developed and diversified businesses.

“A merger of these premier markets would bring together two complimentary platforms, widening mining companies’ access to capital.”