Euronext on track to complete its Borsa Italiana purchase by June

London Stock Exchange selling Italian bourse for €4.33bn

Adding Borsa Italiana will give Euronext about a quarter of all equity trading in Europe. Photograph: iStock

Adding Borsa Italiana will give Euronext about a quarter of all equity trading in Europe. Photograph: iStock

 

Euronext, the pan-European stock market operator, said on Wednesday evening it is on track to complete its acquisition of Borsa Italiana by June, as the group reported full-year figures.

The operator of Euronext Dublin and a number of other exchanges across Europe said that its deal for the Milan bourse is still subject to approvals in several jurisdictions, a declaration of non-objection from Euronext’s regulators and the blessing of the European Commission.

London Stock Exchange Group agreed to sell Borsa Italiana to Euronext and two Italian lenders for more than €4.33 billion in October, in a deal that will create the largest listing venue in Europe. Adding Borsa Italiana will give Euronext about a quarter of all equity trading in Europe, with 28 of the Euro Stoxx 50 companies listed on its markets. The deal means the exchange operator will derive more than a third of its sales in Italy, surpassing France as its largest revenue source.

Securities depository

Euronext will also have a clearinghouse for the first time and gain a securities depository and bond platform.

Euronext said cash trading volumes climbed 27.6 per cent last year to €262.2 million as the pandemic fuelled volatility across equity markets. Fourth-quarter operating profit before exceptional items rose by more than a fifth to €111 million, beating a company-compiled analysts’ consensus estimate of €101.9 million. – Bloomberg