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

Now, the three founders of MILA have decided to take another step forward: merging. A few days ago, the three stock exchanges announced an agreement to create a regional holding company based in Santiago, Chile. Under this model, the three markets will operate under a single regional platform. According to the agreement, the three exchanges will transfer 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 Stock Exchange.

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

The merger of the three exchanges could generate an annual increase in revenue 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.