Euronext To buy Borsa Italiana from LSE Operator

Euronext NV announced that it sent an offer to buy Borsa Italiana from LSEG (London Stock Exchange Group) PLC, the operator of the London Stock Exchange. The company is not sure if the deal will take place.

The offer was made in partnership with Italian banks.

The merger of Euronext and Borsa Italiana may establish a leading player in the capital markets of continental Europe, and the country would become the largest contributor to the consolidated group’s revenues, according to Euronext.

Euronext said on Friday that it was discussing with Cassa Depositi e Prestiti the purchase of Borsa Italiana. Also then, Deutsche Boerse announced that it had applied for the purchase of the Italian stock exchange.

LSEG acquired Borsa Italiana, one of Europe’s largest exchanges, in 2007 for $ 2.3 billion.

In July 2020, LSEG announced that it could sell its stake in the Italian electronic trading platform MTS SpA, owned by Borsa Italiana, or in its entirety, in order to obtain permission from the EU for the deal with Refinitiv.

LSEG announced the acquisition of Refinitiv Holdings Ltd., one of the world’s largest providers of financial information, in August 2019. Under the terms of the deal, LSEG acquires shares of Refinitiv in the amount of $ 14.5 billion, and also takes on the company’s debt in the amount of $ 12.5 billion. Thus, the total amount of the deal is $ 27 billion.

In June this year, the European Commission began an in-depth review of the LSEG and Refinitiv deal, expressing fears that the merger of the companies would lead to a decrease in competition in the segment of trading in various financial instruments and clearing, as well as in the field of financial information.

Euronext is the largest exchange in Europe and operates trading floors in Amsterdam, Brussels, London, Lisbon, Dublin, Oslo and Paris.


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