Euronext will buy Borsa Italiana from the London Stock Exchange for $ 5 billion

Euronext in Exclusive Talks With LSE for Borsa Itliana

Euronext will buy Borsa Italiana from the London Stock Exchange for $ 5 billion

London Stock Exchange on Friday agreed to sell Milan Borsa Italiana to Euronext for € 4.3 billion.

The LSE has confirmed that it entered into exclusive negotiations with the pan-European exchange operator Euronext last month to sell the Borsa Italiana group.

This comes after the LSE reached final terms for the $ 27 billion purchase of data provider Refinitiv. The European Commission, the EU's executive arm, has launched an in-depth investigation to review the terms of the proposed deal..

The sale of Borsa Italiana depends in particular on the Refinitiv deal.

«We continue to make significant strides in a very attractive deal with Refinitiv, and we are delighted to have reached this milestone», – stated on friday David Schwimmer (David Schwimmer), CEO of LSE Group.

«We believe that the sale of the Borsa Italiana group will make a significant contribution to solving the problems of competition in the EU», – he added.

The LSE said it expects to complete the Refinitiv deal by the end of 2020 or early 2021, with the Borsa Italiana deal due in the first half of next year..

LBLV Euronext buys Borsa Italiana from London Stock Exchange 2020/09/10

LSE shares are up about 0.2% shortly after the opening, with Euronext up more than 0.7% on the news.

«We look forward to starting the next phase of our story, working in partnership with Euronext, CDP Equity and Intesa Sanpaolo to further develop our business and contribute to the development of European capital markets.», – stated on friday Rafaele Jerusalmi (Raffaele Jerusalmi), CEO of Borsa Italiana.

The sale of Borsa Italiana to Euronext is considered a politically sensitive topic in Italy due to Borsa's ownership of MTS, an electronic trading platform for Italian government bonds and other types of fixed income securities.

Euronext has partnered with Italy's largest bank Intesa Sanpaolo and the state agency CDP in an effort to secure the backing of the Italian government.

Euronext will buy Borsa Italiana from the London Stock Exchange for $ 5 billion

Stefan Bujna ( Stephane Boujnah, CEO and Chairman of the Board of Euronext, named the deal «significant achievement» in the strategic plan of the company and «a turning point in the history of our group».

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  • Euronext will buy Borsa Italiana from the London Stock Exchange for $ 5 billion