Sweden’s OMX Group has signed a letter of intent to acquire the Armenian Stock Exchange and the Central Depository of Armenia.

“We believe that acquiring the Armenian Stock Exchange and Central Depository is an opportunity for OMX to leverage our experience from developing emerging markets in other countries. OMX will strengthen the Armenian securities market with the goal to enhance its efficiency, liquidity and visibility. Furthermore, OMX’s ambition is to use the Armenian case as a benchmark to enter other emerging capital markets,” says Magnus Böcker, CEO of OMX.

The OMX says that the Armenian market is currently small by any standards, but it sees the potential for growth due to a number of contributing factors, such as the upcoming pension reform, changes to the legal framework and an increased focus on the equity market as a source of capital for companies in the region.

The final agreement depends on fulfillment of certain conditions and is subject to final approval from relevant Armenian authorities and the Central Bank of Armenia.

“We are delighted that OMX has decided to participate in developing the Armenian capital market. The Armenian government and the Central Bank of Armenia are truly committed to this task and we will do all we can to help OMX achieve the mutually set goals,” says Serge Sargsyan, Prime Minister of the Republic of Armenia.

“The Central Bank of Armenia has been working together with OMX for over a year and we believe that this acquisition is an important step towards achieving our long-term goals for the Armenian capital market. We welcome OMX’s increased involvement and a continued positive cooperation,” continues Tigran Sargsyan, Governor of the Central Bank of Armenia.