European stock exchange owner Euronext bids to buy Borsa Italiana from the London Stock Exchange
European stock exchange owner Euronext has tabled an offer to buy the Borsa Italiana from the London Stock Exchange (LSE).
Euronext said it had finally submitted its long-rumoured proposal, partnering with Italy’s sovereign wealth fund CDP Equity and banking group Intesa Sanpaolo.
The offer pits Euronext against Switzerland’s exchange SIX and Germany’s Deutsche Boerse, both of which have also joined the race for the Italian exchange.
Euronext has tabled an offer to buy Milan-based exchange the Borsa Italiana partnering with Italy’s sovereign wealth fund CDP Equity and banking group Intesa Sanpaolo
The LSE bought Borsa Italiana in 2007 for £1.5billion, but the bids are thought to value the company at more than £3billion.
A sale of the Italian unit should help the LSE in its efforts to get its blockbuster £20billion merger with data provider Refinitiv over the line.
It wants to win approval from the European Union’s competition watchdogs, which launched an investigation into the deal in June.
Euronext said: ‘The proposed combination of Borsa Italiana and Euronext would create a leading player in continental European capital markets, where Italy would be the largest revenue contributor to the enlarged Euronext group.’
Euronext has been in the shadow of the LSE, with a market value of just £6.5billion compared to the British exchange’s £32billion.