London Stock Exchange negotiates Borsa Italiana for sale
The Italian stock exchange says no to the BPVI listing.
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09 October 2020 Borsa Italiana moves from London to Paris.
In a note, the London Stock Exchange Group confirmed that it has agreed to sell its entire stake in the Italian Stock Exchange to Euronext for 4.325 billion euros.
Euronext will take over, in partnership with Cdp Equity and Intesa Sanpaolo, Borsa Italiana, creating a pan-European market infrastructure.
As stated in a note, Euronext purchased 100% of Borsa Italiana from London Stock Exchange Group for a value of 4.325 billion euros.
Strong support is expected from Cassa Depositi e Prestiti (through Cdp Equity) and Intesa Sanpaolo as strategic investors, with the long-term commitment to support the growth of Borsa Italiana, attract SMEs to the capital markets and support the ambitions of growth of Euronext.
The operation that will bring Borsa Italiana into Euronext's orbit "will create the backbone of the Union of Capital Markets".
This was underlined by Stephane Boujnah, CEO and president of Euronext, according to whom the operation "will significantly increase the size of the group".
The agreement, he explained, will allow the company to "diversify its mix of revenues and its geographical presence" and, "thanks to the strategic support of a long-term investor like Cdp, it will strengthen the ambition to build a market infrastructure. leader throughout Europe ".
The aggregation, Euronext points out, will create a leading market infrastructure in the European Union, whose key role in connecting local economies to global markets is strengthened by the creation of the main marketplace for listing and secondary markets, as well as for the '' issuance of equity and bond securities in Europe.
The transaction significantly increases Euronext's size, diversifies its business mix with new asset classes and strengthens its post-trade activities.
With this transaction, Euronext realizes the ambition to create the main pan-European market infrastructure.
The transaction is subject to certain conditions precedent, including the fact that the sale of the Borsa Italiana Group or a significant part thereof constitutes a condition imposed by the European Commission in order to authorize the proposed acquisition of Refinitiv by Lseg.
"The acquisition marks an important milestone in Euronext's strategic plan Let's Grow Together 2022 and a turning point in the history of the Group," commented Stéphane Boujnah, CEO and Chairman of the Euronext Executive Committee.
"Thanks to this operation, Euronext will significantly diversify its mix of revenues and its geographical footprint by welcoming the market infrastructures of Italy, a country of the G7 and the third largest economy in Europe. The combination of Euronext and the Borsa Italiana Group, with the strategic support of long-term investors such as CDP, realizes the ambition to create the main pan-European market infrastructure, connecting local economies to global capital markets ".