Bank of Montreal (BMO) and Royal Bank of Canada (RBC) are advising the London Stock Exchange (LSE) and the Toronto Exchange (TMX) in their proposed merger (they're the "Fill" Team).  Opposing the merger, the "Kill Team" are the securities units of Toronto Dominion Bank (TD), Canadian Imperial Bank of Commerce (CIBC) and the National Bank of Canada was to "Kill" the deal. 

"Canadians are quite capable of competing and winning on the global stage.  Our success does not depend on selling out or waiting for others to ‘save’ us."  -- TD Bank, CIBC, NBC.

The 3 "Kill" banks aren't alone in their opposition - over the last several weeks, other members of the Canadian financial community have expressed reservations because of concerns about the loss of economic autonomy.  Several prominent politicians, including some with the power to veto the deal, have been openly skeptical or, at best, noncommittal.  Before the trans-Atlantic deal can become reality, though, it must undergo at least 6 governmental reviews - a daunting enough task.  The banks’ statement further fed speculation that the merger would be denied. 

The TMX Group and the LSE Group had expected political resistance to their plan, which was announced last month.  The CEO's of both exchanges carefully, and repeatedly, described the deal as "a merger of equals" and emphasized that the resulting company would have HQ's in both London and Toronto with board representation from both countries, among other promises. 

But critics argue that many small and medium-sized companies based in Canada will simply be lost in the shuffle of a bigger exchange.  "Given that less than 10% of Canada’s small- and medium-sized businesses operate in global markets, access to capital for the largest segment of our economy could be adversely affected," the banks argued in their statement.  The also argue that the deal is, in fact, a takeover of the Toronto exchange by London. 

This merger fight is shaping up to be a good fight - much like the merger fight taking place "down south" in New York - with the proposed "merger" of NYSE Euronext and Deutsche Borse.   [NYT Dealbook, 3/9]