Singapore Exchange Ltd (SGX) has been informed that there is a big possibility that its proposal to $8.4-billion take over the local Australian bourse will be rejected by Australian Treasurer Wayne Swan.

The Australian Stock Exchange (ASX) said in an announcement today that as notified today by the Foreign Investment Review Board Mr. Swan "is disposed to the view, under the Foreign Acquisitions and Takeovers Act, that the proposed merger of ASX and SGX should be rejected as contrary to the national interest."

ASX shares fell 3.2 percent to A$33.72 at 4:04 p.m. in Sydney. Singapore Exchange jumped 6 percent to S$4.49 after Swan's comments.

Australia's Parliament is so far prevailing opposing this deal, which they deemed as going against the national interest. Nevertheless, the mergers of stock exchanges all over the world have taken place to increase their leverage and volumes across trading platforms.

SGX said in a related Bloomberg report said that after the said announcement it will continue pursuing other strategic growth opportunities and other mutual talks with the ASX.

The SGX has even agreed to give more board seats to Australians if the deal will be pursued, which in October puts a 42 percent premium on the ASX's share price.

Treasurer Swan said in an e-mailed statement and quoted by Bloomberg News today: "The Foreign Investment Review Board advised him that Singapore Exchange's bid wasn't in the country's national interest."

He had "serious concerns" about the proposal and had not yet made a final decision.