OREANDA-NEWS. February 09, 2011. The MICEX shareholders have signed an agreement of intent under which the MICEX is to acquire a controlling stake in the RTS. The Agreement was signed with the RTS shareholders collectively owning more than 50% stake in their Exchange.

In accordance with the Agreement, the legal and business plan for the unification of the two exchanges will be prepared before 15 April. The transaction is expected to be closed before the end of the second quarter of 2011. To complete the transaction, it will be necessary to perform a series of corporate procedures and obtain approval from the Federal Antimonopoly Service and other regulatory bodies. The technological merger of the two exchanges can be completed during 2011–2012.

In accordance with the parameters set in the Agreement, 35% of the purchased block of the RTS shares will be paid for in cash, 65% with will be paid for in shares in the MICEX. The MICEX Group is going to offer other RTS shareholders to join this Agreement on these terms.

The merger of Russia’s two largest exchanges will enable to create a single powerful infrastructure of the financial market that will have with a strong team of professionals and will adhere to modern principles of interaction between the subdivisions of the combined company and market participants. This step is crucial to the creation of an international financial center in Moscow.

“This agreement starts the process of unification of Russia’s two largest exchanges on the market basis. The unification of platforms, technologies and human resources of our companies will enable, in the near future, to establish a powerful trading floor in Moscow that can become one of the fastest growing exchanges in the world. Signing this Agreement we express our confidence that the merger will create additional value for the MICEX and the RTS shareholders. It will also make a positive impact on the functioning of the Russian market by substantially increasing the overall level of its liquidity,” said President of the MICEX Group Ruben Aganbegyan.

Chairman of the RTS Board Roman Goryunov believes that the signing of this Agreement is a major step forward in the creation of a single strong exchange. “Combining the best experience of the two companies can provide a great synergy and strengthen Russia’s position in the international market. A dynamic and efficient team with great potential, modern trading technologies, services and instruments for which market participants have demand, as well as a unique system of risk management will guarantee Russia’s success in the global financial market.”