Do you remember MILA? The Latin American Integrated Market formed by the stock exchanges of Colombia, Lima and Santiago that was born in 2010 to give investors a larger portfolio of stock market instruments to invest in.

Now, the three founders of MILA have decided to go one step further: to merge. The three exchanges announced a few days ago an agreement whereby they will create a regional holding company that will be headquartered in Santiago, Chile. Under this model, the three exchanges will operate under a single regional platform. Under the agreement, the three exchanges will cede 100% of their shares in exchange for 40% ownership of the new holding company in the case of the Colombian and Santiago exchanges and 20% in the case of the Lima exchange.

The integration is pending approval by the authorities of Colombia, Peru and Chile, but it is estimated that it could be completed by July of next year.

The merger of the three exchanges could generate an annual increase in revenues of between US$21 million and US$41 million in the short term due to synergies in traditional business lines and the development of new lines, such as co-location services and regional index licensing.