London Stock Exchange Group has entered into exclusivee talks to sell Milan’s Borsa Italiana to the European stock market operator Euronext as reported by Reuters.
LSE has picked Euronext’s bid for the sale of Borsa Italiana. With the French operator seeing off bids by Deutsche Boerse and Switzerland’s Six because it looks to add another bourse to its European Network.
- The LSE is selling Borsa as a part of its regulatory remedies to see through its $27 billion purchase of data provider Refinitiv.
- Offers for Borsa valued the Italian exchange for up to 4 billion euros, and to be precise $4.74 billion.
- The offer price of Euronext was not clear as the main purpose was to gain exclusivity for the bid negotiation. However, the investors welcomed the move, and Euronext [ENX.FR] share price moved up by 4% at 0800 GMT, and the stock of LSE was up by 0.5%.
Euronext said that the key businesses and central functions of the new group would be based in Milan and Rome. This will bring Milan under eurozone ownership after Britain left the European Union in a move. It will probably please the policymakers in Brussels aim to buttress the capital market of the bloc.