The London Stock Exchange Group (LSEG) has entered into exclusive discussions with Euronext after reviewing several competitive proposals for its Borsa Italiana business.
The sale is expected to help clear the way for LSEG’s $27bn merger with Refinitiv, a provider of financial market data and infrastructure.
LSEG indirectly owns a 99.99% stake in Milan-based Borsa Italiana, which operates the Italian Equity Market dedicated to mid and large size companies, AIM Italia and several other trading platforms.
Borsa Italiana’s group includes clearing house Cassa Di Compensazione e Garanzia, MTS, central securities depository Monte Titoli and Elite.
Euronext has partnered with Italy’s state investor CDP Equity and banking group Intesa Sanpaolo on its bid.
Borsa Italiana would maintain its existing functions, structure and relationships within the Italian ecosystem
Both the parties confirmed that there can be no certainty that a transaction will result from the talks.
LSEG said any potential sale will depend on the outcome of the European Commission’s review of the Refinitiv transaction and that transaction closing in accordance with its terms.
If the deals goes ahead, Borsa Italiana would maintain its existing functions, structure and relationships within the Italian ecosystem and the Italian CEO of Borsa Italiana would join Euronext managing board.
Euronext said key businesses and central functions of the new group would be based in Milan and Rome.
Claimed to be the largest bourse in continental Europe, Euronext operates regulated exchanges in Belgium, France, Ireland, The Netherlands, Norway and Portugal.
As of June 2020, Euronext had nearly 1,500 listed issuers worth €3.8 trillion in market capitalisation. The company operates regulated and transparent equity and derivatives markets.
