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

Now, the three founders of MILA have decided to take it a step further: to merge. A few days ago, the three exchanges announced an agreement to create a regional holding company that will be headquartered in Santiago, Chile. Under this model, the three markets will operate under a single regional platform. According to the agreement, the three stock exchanges will transfer 100% of their shares in exchange for a 40% stake in the new holding company in the case of the Colombian and Santiago exchanges, and a 20% stake 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 by July of 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, driven by synergies in traditional business lines and the development of new ones, such as co-location services and the licensing of regional indices.