Canadian regulator approves StoneX-Forex.com deal
The planned $236 million acquisition of retail forex brokerage group Gain Capital – parent of the Forex.com and City Index brands – passed another hurdle with the approval of the change of control in the company given by the IIROC in Canada.
The IIROC, or The Investment Industry Regulatory Organization of Canada, is the national self-regulatory organization which oversees all investment dealers and trading activity on debt and equity marketplaces in Canada.
The acquisition of New Jersey based Gain Capital by INTL FCStone – which as of next Monday will be rebranding as StoneX – passed its most important potential impediment in early June, when Gain Capital shareholders voted in favor of the deal. Before the shareholder vote held on June 5 there was much opposition to the transaction among some of Gain’s larger independent shareholders. The opposition was centered mainly on the company’s much-improved results since the deal was originally struck at $6 per share in late February.
The StoneX-Gain deal is still awaiting the approval of other regulators (mainly) in the US and the UK, which the parties expect to receive during Q3.
The IIROC’s notice on the Gain Capital change-of-control approval can be seen here (pdf).