Pedestrians pass through the Italian stock exchange Borsa Italiana, part of the London Stock Exchange Group Plc in Milan, Italy, on Thursday, October 8, 2020.
Camilla Serea | Bloomberg via Getty Images
LONDON — On Friday, the London Stock Exchange agreed to sell Milan’s Borsa Italia Stock Exchange to Euronext for 4.3 billion euros ($5 billion).
LSE confirmed last month that it began exclusive discussions with the pan-European stock exchange Euronext about the sale of the Borsa Italiana group.
It’s after LSE has reached decisive terms to purchase data provider Refinitiv for $27 billion. The European Union’s executive body, the European Commission, has launched an in-depth investigation to consider the terms of the proposed transaction.
The sale of Borsa Italiana depends above all on the progress of the Refinitiv transaction.
David Schwimmer, CEO of LSE Group, said in a statement Friday: “We continue to make good progress on our very attractive Refinitiv deal and are excited to reach this important milestone.”
“We believe that the sale of the Borsa Italiana group will contribute significantly to solving the EU’s competition problem,” he added.
LSE expects to complete the Refinitiv deal by the end of 2020 or early 2021, with the Borsa Italiana deal going to go on in the first six months of next year.
LSE’s share price rose about 0.2% right after opening, and Euronext rose more than 0.7% on the news.
Raffaele Jerusalmi, CEO of Borsa Italiana, said, “We look forward to working with Euronext, CDP Equity and Intesa Sanpaolo to take the next step in our history to further develop our business and contribute to the development of European capital markets.” Said on Friday.
The sale of Borsa Italiana to Euronext is considered politically sensitive in Italy as Borsa, a bond platform that handles electronic trading of Italian government bonds and other types of fixed income securities, owns MTS.
Euronext has partnered with Italy’s largest bank Intesa Sanpaolo and the state agency CDP to secure support from the Roman government.
Stephane Boujnah, CEO and Chairman of the Board of Euronext, described the deal as a “significant achievement” and “a turning point in the history of our group” in the company’s strategic plan.