The London Stock Exchange (LSE) has agreed to sell its entire shareholding of Borsa Italiana to Euronext for an equity value of just over €4.3bn.
This figure could grow during the process of completion depending on the cash generated in this period.
Euronext and the LSE only entered into a discussion regarding the acquisition of Borsa Italiana in early September.
Euronext’s acquisition of the Italian stock exchange remains dependent on the European Commission’s clearance decision of the LSE’s Refinitiv transaction.
While the European Commission’s review of the acquisition of Refinitiv is still ongoing, the LSE has an expectation that divestment of Borsa Italiana will be a condition for the clearance of the Refinitiv deal.
From the €4.3bn cash the LSE is set to receive, the exchange plans to repay indebtedness related to the Refinitiv deal and for general corporate purposes.
Euronext’s acquisition of Borsa Italiana is set to close in the first half of 2021 after the LSE is expected to complete the Refinitiv transaction at the end of 2020 or early 2021.
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David Schwimmer, CEO of LSE, commented: “We continue to make good progress on the highly attractive Refinitiv transaction and we are pleased to have reached this important milestone.
"We believe the sale of the Borsa Italiana group will contribute significantly to addressing the EU’s competition concerns.”
Raffaele Jerusalmi, CEO of Borsa Italiana, added: “We have enjoyed a long and successful relationship with LSE, which has invested in and developed our business over the last 12 years.
“We look forward to embarking on the next phase of our history, working in partnership with Euronext, CDP Equity and Intesa Sanpaolo to further develop our business and to contribute to the development of European capital markets.”
