The London Stock Exchange (LSE) is to merge with Canada’s TMX Group, creating the largest platform for mining company listings in the world.

The merger, which has been recommended by both boards, will see the new entity jointly headquartered in London and Toronto. LSE shareholders will own 55% of the combined group which will be listed on both the London and Toronto Stock Exchanges.

The merged group will have more than 6,700 listed companies and a market capitalisation of £3.7 trillion.

It will also create the top listing venue for natural resources, mining, energy and clean technology firms and cover 20 trading markets/platforms across the world, the statement from LSE said today.

The duo is targeting a revenue of £35 million in year three rising to £100 million in year five.

Xavier Rolet, who became LSE chief executive nearly two years ago replacing Dame Clara Furse, will lead the merged group.