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The London Stock Exchange and Euronext reach an agreement on the Italian Borsa.
The London Stock Exchange and Euronext reach an agreement on the Italian Borsa.
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Piazza Affari changes hands. The London Stock Exchange said it accepted Euronext’s € 4.32 billion offer. LSE entered exclusive negotiations last month with the pan-European list, after the consortium’s offer (which also involves Intesa Sanpaolo and Cassa Depositi e Prestiti) was preferred to that of Deutsche Boerse and Switzerland’s SIX. The London Stock Exchange move is aimed at obtaining antitrust clearance for the Refinitiv purchase.
Synergies
The merger between Euronext and Borsa Italiana, underlines the Radiocor agency, will lead “immediately” to an increase in earnings per share, even before registering the expected synergies of 60 million gross per year when it is fully operational (within the third year). In detail, cost synergies of 45 million gross are estimated, “generated mainly by the migration of the equity and cash derivatives markets from Borsa Italiana to Optiq, Euronext’s proprietary trading platform, plus technological synergies resulting from the cooperation of CSD and activities of exchange of competencies, processes and systems within the group resulting from the aggregation “. Added to these are the revenue synergies of 15 million gross “, generated by the launch of the unique liquidity pool and the unique order book of Euronext in Italy, by the development of a pan-European offer of derivative products, by the cross-selling of products and business growth opportunities such as the offer of corporate services in Italy and the expansion of the analytics and data offering. ”The increase in earnings per share should accelerate by double digits” in the third year after synergies. ” Restructuring costs are estimated at 100 million.
Comments
“We are particularly proud to be the protagonists of this operation – said Fabrizio Palermo, CEO of Cassa Depositi e Prestiti – Cdp contributes to bring Piazza Affari to a pan-European group with a stable presence of Italian investors”.
For his part, Stephane Boujnah, CEO of Euronext, stated that “from a financial point of view, the transaction generates significant value for shareholders” and that “Borsa Italiana will play a fundamental role in the operations, strategy and governance of the new group and will be the largest contributor in terms of revenue “of the new company that will come out of the aggregation.
