Clayton Utz is acting as legal advisers to Singapore Exchange (SGX) on its proposed merger with ASX Ltd via scheme of arrangement, announced today.

It is understood Freehills is advising the ASX.

Allen & Gledhill LLP are the Singapore legal advisers for the SGX.

The ASX went into an unexpected trading halt on Friday as rumours swirled about a possible takeover bid and merger with the Singapore Stock Exchange.

Shares in the $8 billion Singapore Stock Exchange also halted.

Clayton Utz Corporate partners Rod Halstead and Karen Evans-Cullen are the firm's lead partners, with banking partner Alex Schlosser advising on the financing of the transaction.

Under the Scheme terms, ASX shareholders will receive a combination of cash (AUD$22.00) and scrip (3.473 new ordinary SGX shares) for each ASX share.

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The combined exchange group, ASX-SGX Limited, will have a market capitalisation of approximately AUD $16 billion at the current bid price. ASX and SGX will remain separate legal and locally regulated entities.

Commenting on the deal, Rod Halstead said: "This is an important transaction which represents the first merger of exchanges in the Asia-Pacific region in a period of significant structural change in global financial markets. It also

continues Clayton Utz's strong track record of inbound cross-border M&A transactions."

Foreign investment specialists, meanwhile, doubt the $8.4 billion merger will receive regulatory approval in its current form, ABC News reports.

Emin Altiparmak, a senior associate in mergers at Allens Arthur Robinson, told ABC News the Australian Foreign Investment Review Board is like to closely examine whether the merger could lead to resources and jobs moving offshore.

“I think it is fair to say they will take a much closer look at the transaction,” he said.

“And given the nature of FIRB being a political process and the fact that there is another government involved,” I think they will take a much closer interest.”