Pan-European stock market operator Euronext announced Monday it has submitted an offer to buy Milan’s Borsa Italiana from the London Stock Exchange Group in partnership with Italy’s CDP Equity and Intesa Sanpaolo.
Euronext, which is competing against Germany’s Deutsche Boerse and Switzerland’s SIX for the Italian stock exchange operator, said there was no certainty that the ‘non-binding’ bid would lead to a transaction.
The potential for a bidding war for Milan’s stock exchange was opened after its current owner, the London Stock Exchange Group (LSEG), said in July it was prepared to sell the subsidiary to win approval by the EU Commission of its planned purchase of US financial data provider Refinitiv.
According to sources familiar with the negotiations, Swiss stock exchange operator SIX has also made an offer that would give Borsa Italiana lots of autonomy and a considerable amount of investment, including in technology. No financial information on the offers has been released, but, according to a financial news agency, Borsa Italiana could fetch between 3.5 and 4.0 billion euros ($4.2-4.8 billion).
In addition to operating the Milan stock exchange, Borsa Italiana also has trading platforms for government bonds, a clearing house for trading operations plus a depository, which would make it a valuable addition to all three bidders.
‘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,’ it said in a statement indicating the importance of the Italian operator.
Euronext said last week it teaming up with Italy’s CDP Equity, part of a state-held banking group, to make its bid for Borsa Italiana.
On Monday it added it would be joined by Intesa Sanpaolo, Italy’s largest bank by capitalisation.
Euronext, which runs a handful of European stock exchanges including the one in Paris, has been on a shopping spree recently, buying the Danish Central Securities Depository, VP Securities, last month to expand its Nordic footprint.
It also acquired the Scandinavian electricity exchange Nord Pool in January and the Oslo Stock Exchange in June 2019.
By contrast, it decided not to buy the Madrid stock exchange, which was eventually snapped up by SIX.
Rome has said all offers will be examined closely by the government and the regulatory authorities.
Want stories like this in your inbox?
Sign up to exclusive daily email
More Stories from Stocks