LSE to Sell Borsa Italiana to Euronext for $5 Billion

It is official. The London Stock Exchange Stock Exchange A stock exchange, also known as a securities exchange or bourse represents is a facility where stockbrokers and traders can buy and sell securities.This includes shares of stock, bonds, exchange-traded funds (ETFs), or other financial instruments. By extension, stock exchanges can also provide facilities for the issue and redemption of such securities and instruments and capital events including the payment of income and dividendsStock exchanges have developed into a permanent fixture in the fin A stock exchange, also known as a securities exchange or bourse represents is a facility where stockbrokers and traders can buy and sell securities.This includes shares of stock, bonds, exchange-traded funds (ETFs), or other financial instruments. By extension, stock exchanges can also provide facilities for the issue and redemption of such securities and instruments and capital events including the payment of income and dividendsStock exchanges have developed into a permanent fixture in the fin Read this Term (LSE) has agreed to sell Borsa Italiana to Euronext for 4.33 billion euros ($5.09 billion) in cash.

Announced on Friday, the two parties have already entered into a binding agreement as Euronext will receive 100 percent of the issued share capital of the Italian Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term.

“Euronext will significantly diversify its revenue mix and its geographical footprint by welcoming the market infrastructure of Italy, a G7 country and the third-largest economy in Europe,” Euronext’s chairman and CEO, Stéphane Boujnah said.

Clearing Hurdles for Refinitiv Acquisition

The LSE decided to sell Borsa Italiana to pave its way for the acquisition of data provider Refinitiv. That deal is expected to close at $27 billion and is receiving regulatory flags for antitrust concerns.

“We continue to make good progress on the highly attractive Refinitiv transaction, and we are pleased to have reached this important milestone,” LSE CEO, David Schwimmer said.

“We believe the sale of the Borsa Italiana group will contribute significantly to addressing the EU’s competition concerns.”

The confirmation of the Borsa Italiana deal came around a month after the LSE announced entering into exclusive talks with Euronext. Other European giants, including Germany’s Deutsche Börse and Switzerland’s SIX Group, also made bids to purchase the Italian exchange.

Euronext itself is one of the major European financial market operators and runs six exchanges across the continent. Its new Italian subsidiary generated €464 million revenue and an EBITA of €264 million in 2019 and will be a major contributor to the Euronext portfolio.

“The combination of Euronext and the Borsa Italiana Group, with the strategic support of long-term investors such as CDP, delivers the ambition of building the leading pan-European market infrastructure, connecting local economies to global capital markets,” Boujnah added.