Singapore Exchange Ltd. said Australia’s Foreign Investment Review Board had informed it that the country’s treasurer, Wayne Swan, was inclined to reject the deal.

Swan, who has veto powers on major foreign investments in Australia, confirmed the view after SGX issued a statement on the matter, saying the review board shared his reservations.

“FIRB informed SGX that I had serious concerns about the proposal and that, subject to further consideration, I intended to accept the unanimous FIRB advice that the takeover would not be in the national interest,” Swan said in a statement.

SGX made a $8.3 billion cash and shares takeover offer for ASX in October in a bid to become a leading Asian finance center.

Swan stressed that he had not made a final decision on the deal.

SGX said it had been invited to provide further comments to the review board, and that it would consider appropriate responses.

SGX said it will continue to pursue other growth opportunities including further talks with ASX on other forms of cooperation.

ASX said in statement the company’s board still believes it should participate in “regional and global exchange consolidation” and would continue to evaluate strategic growth opportunities, including other forms of cooperation with SGX.