Nelson Bocanegra

BOGOTA (Reuters – Latin America’s second largest bourse, BOGOTA (Reuters). The Colombian Chilean, Peruvian, and Peruvian stock markets have approved a merger, they stated.

In a statement published late Monday by Colombia’s financial regulator, they said that the holding company would be located in Chile. Each country is still waiting for approval.

Chilean Exchange will own 40%, Colombian bourse 40%, and Peru 20%.

Juan Pablo Cordoba (head of Colombia’s stock market) said that “the boards of three countries today approved this integration,” in a video.

He stated that integration would mean the removal of borders as well as a greater vision for the future development and growth of the capital markets in Colombia and other regions.

According to the statement, integration will be based on an average stock exchange valuation of $259 million in Chile, $248 million in Colombia, and $138 million per Peru.

Long-planned integration will result in an increase of debt issuers and international participation. It will also increase regional investments in pension funds.

The statement stated that “this way we can achieve a greater growth of the regional markets through standardization of business model and the creation technological and operational synergies.”

According to the estimates of the exchanges, income growth at the holding company will be 47% more than that for each exchange.