The London Stock Exchange Group is said to be in talks with the owner of the Singapore exchange about a potential 7.2 billion euros merger deal, according to a UK-based newspaper.

The Daily Telegraph

reported the British bourse, which pulled out of a £4.2 billion merger with the owner of the Toronto stock exchange last year, is understood to have held a series of informal conversations with the Singapore Exchange, its Asian rival, about a formal tie-up.

The paper said although still in its preliminary stages, the talks are believed to have focused on the benefits of merging the two exchanges amid continued consolidation attempts in the sector.

In addition to the foiled London/Toronto tie-up, the newspaper said the NYSE Euronext has been attempting to merge with Deutsche Borse, a deal which was scuppered by European regulators, while the Singapore Exchange itself attempted to buy the ASX, the Australian stock exchange.

The Daily Telegraph said if the London-Singapore deal were to come to fruition, it is expected the combined exchange group would rank third in the world in terms of trades, behind NYSE Euronext and Nasdaq OMX.

In recent weeks Xavier Rolet, chief executive of LSE Group, is believed to have held a series of talks with his opposite number, Magnus Bocker, about the potential combination.

- Bernama