Euronext and CDP Equity confirmed that they are in talks with London Stock Exchange Group plc (LSEG) to acquire Borsa Italiana Group, together with Intesa Sanpaolo.
The potential new combination of Euronext and Borsa Italiana will be well positioned to deliver the ambition of further building the backbone of the Capital Markets Union in Europe, while at the same time supporting local economies.
If Borsa Italiana joins Euronext, Italy will become the largest revenue contributor to the enlarge pan-European market operator. At group level of Euronext governance, Italy will be represented by Italian representatives, in the Reference Shareholders, the Supervisory Board, the Managing Board and the College of Regulators supervising Euronext group’s activities.
As part of the potential partnership, CDP Equity and Intesa Sanpaolo would join the existing group of Euronext long-term Reference Shareholders. There would be a second Italian candidate proposed as an independent member of the Supervisory Board and would become the Chairman of the combined group. Consob would be invited to join Euronext’s College of Regulators and become part of the supervision of Euronext at group level pari passu with other European regulators. Borsa Italiana’s direct regulatory oversight will remain unchanged and Consob and Banca d’Italia will be able to continue to directly superve Borsa Italiana’s activities.
Borsa Italiana would preserve its Italian identity and strengths by maintaining its current function and structure. The CEO of Borsa Italiana will join Euronext’s Managing Board. Essential business and central functions of the new group will be based in Milan and Rome.
The terms of the transaction remain subject to the partners’ Managing Board and Supervisory Board approvals and there is still no certainty that the transaction will happen. Euronext stated that further information will be announced “as and when appropriate.”
