The Italian exchange Borsa Italiana is scheduled for sale
The Italian exchange Borsa Italiana may soon be taken over by a new owner. The London trading floor has announced its sale while the process is under negotiation, but the Euronext exchange is considering a likely buyer. The amount of the deal may be about 4 billion euros.
Borsa Italiana is one of the largest trading floors in Europe, it is owned by London Stock Exchange Group. After the name of the likely buyer – Euronext, its shares increased by 5%. This marketplace owns stock exchanges in various Borsa Italiana, and for this purpose the operator cooperates with Italian organizations – investment bank Cassa Depositi e Prestiti and Intesa Sanpaolo. After the conclusion of the transaction, the major divisions of the exchange will be located in Milan and Rome.
Borsa Italiana has been owned by the London Stock Exchange since 2007, when the purchase amount was $2.3 billion. Deutsche Boerse from Germany was among those willing to buy the Italian trading floor.
The Italian exchange sale is conditioned by the plans of London Stock Exchange to buy Refinitiv company, for which 27 billion dollars are asked. 45% of the latter belongs to Thomson Reuters, 55% manages an investment fund Blackstone from the U.S. Through the acquisition of Refinitiv, the London Stock Exchange will become one of the largest financial markets in the world.
Borsa Italiana was founded in 1808 and during its long history, the exchange has become the central marketplace in the country. Since the 19th century, shares have been traded here, the first of them being securities of the railway company Società Ferroviaria del Lombardo Veneto.
The heyday of the stock exchange came in the 1970s, when it strengthened its position and became the financial center of Italy. The country’s market itself changed, it became centralized, in 1991 the Exchange Council was created, the creation of which contributed to the process of privatization of trading platforms, among them Borsa Italiana. By 1997 the Italian Exchange became a joint stock company, although it had previously been a public institution. Borsa Italiana included a number of subdivisions, which served the process of securities trading and organized all the important processes. In 2007, the exchange was bought by the London Stock Exchange.
Companies that want to present their shares on the Italian Stock Exchange have to meet a number of requirements. The capitalization of the business must be from 40 million Euros and above, the shares, which belong to the same class, are distributed to investors and represent 25% of the total capital. The company also provides financial statements for the last 3 years of operation and an audit opinion. It is not yet known whether the rules will change after the purchase of the Italian Exchange.