Euronext secures Borsa Italiana for 鈧�4.3bn from LSEG
09 October 2020 Amsterdam
Image: picture10/Adobe.com
Euronext has confirmed plans to acquire Borsa Italiana from the London Stock Exchange Group (LSEG) for just over 鈧�4.3 billion as part of its long-term strategy of becoming a pan-European market infrastructure powerhouse.
The Milan-based bourse, which is Italy's only exchange, earned 鈧�464 million revenue last year and Euronext hopes it will 鈥減lay a key role in the future operations, strategy and governance鈥� of its expanded group, as its largest revenue contributor.
The combined entity 鈥渟ignificantly enhances鈥� the scale of Euronext, diversifies its business mix into new asset classes as well as strengthening its post-trade activities, it says.
The deal is dependent on LSEG being required to sell Borsa Italiana Group as a condition of the European Commission鈥檚 clearance of its acquisition of Refinitiv, a global market data provider.
Securing an exchange from a G7 country marks a major step forward for Euronext鈥檚 鈥楲et鈥檚 Grow Together 2022鈥� strategic plan which previously saw it snap-up exchanges in Dublin, Amsterdam and Paris.
St茅phane Boujnah, CEO and chairman of the managing board of Euronext, says: 鈥淭hanks to this transaction, Euronext will significantly diversify its revenue mix and its geographical footprint by welcoming the market infrastructure of Italy, a G7 country and the third-largest economy in Europe.
鈥淭he proposed combination will create the backbone of the Capital Markets Union in Europe,鈥� he adds.
Euronext entered into on the purchase last month after beating rival bids from Deutsche Boerse and SIX Group.
To secure the bid, Euronext has partnered with CDP Equity, an Italian sovereign wealth fund formerly known as Fondo Strategico Italiano, and Intesa Sanpaolo, an Italian banking group.
The Milan-based bourse, which is Italy's only exchange, earned 鈧�464 million revenue last year and Euronext hopes it will 鈥減lay a key role in the future operations, strategy and governance鈥� of its expanded group, as its largest revenue contributor.
The combined entity 鈥渟ignificantly enhances鈥� the scale of Euronext, diversifies its business mix into new asset classes as well as strengthening its post-trade activities, it says.
The deal is dependent on LSEG being required to sell Borsa Italiana Group as a condition of the European Commission鈥檚 clearance of its acquisition of Refinitiv, a global market data provider.
Securing an exchange from a G7 country marks a major step forward for Euronext鈥檚 鈥楲et鈥檚 Grow Together 2022鈥� strategic plan which previously saw it snap-up exchanges in Dublin, Amsterdam and Paris.
St茅phane Boujnah, CEO and chairman of the managing board of Euronext, says: 鈥淭hanks to this transaction, Euronext will significantly diversify its revenue mix and its geographical footprint by welcoming the market infrastructure of Italy, a G7 country and the third-largest economy in Europe.
鈥淭he proposed combination will create the backbone of the Capital Markets Union in Europe,鈥� he adds.
Euronext entered into on the purchase last month after beating rival bids from Deutsche Boerse and SIX Group.
To secure the bid, Euronext has partnered with CDP Equity, an Italian sovereign wealth fund formerly known as Fondo Strategico Italiano, and Intesa Sanpaolo, an Italian banking group.
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