Customers of both Euronext and Borsa Italiana Group will now benefit from the larger size of the new group.
Euronext has announced the completion of its $5.3 billion acquisition of Borsa Italiana from the London Stock Exchange Group. The European exchange Operator revealed on Thursday that the deal went ahead after all condition precedents were deemed satisfactory by both parties. Chief Executive of Euronext, Stéphane Boujnah speaking after the announcement stated that the “significantly scaled-up group is now poised to become the leading pan-European market infrastructure and the leading venue in Europe for listing and secondary markets for both debt and equity financing.”
Boujnah added that Euronext will be creating new capabilities in fixed income trading and clearing, as customers of both Euronext and Borsa Italiana Group will now benefit from the larger size of the new Group and its increment in business diversification, enhanced post-trade activities such as a significant CSD as well as a multi-asset clearing.
The European exchange Operator also plans to leverage its enhanced capabilities to better European capital markets, support local economies, and serve as the cornerstone of the Capital Markets Union in Europe. The acquisition also gives market members, local investors, and issuers of each Euronext market access to a large range of active institutional investors in Europe and across the globe.
Euronext first announced the deal back in October but received the go-ahead from European regulators in March. The European exchange operator underwent a leadership restructure in January in preparation for the takeover and now experts its data center to be based in Bergamo, Italy and should be operational by 2022 after it signed a contract to host its Group core data center with Aruba S.p. A.
In a statement after the deal, Euronext said “The migration is being planned in response to multiple factors, including the acquisition of the Borsa Italiana Group, the dynamic created by Brexit and a strong rationale to locate the Group’s core data center in a country where Euronext operates a large business.”
European exchange operator also revealed that its Integration process is underway with governance structure already running with integration plan being developed further. CDP Equity and Italian banking group Intesa Sanpaolo following the acquisition will now join the Euronext Reference Shareholders via a subscription to a private placement for $702 million, committing their long-term support to the growth and ambitions of the Group.
Euronext is set to propose that, one Supervisory Board member represent CDP Equity, as representative of the Reference shareholders, and one independent Italian Supervisory Board member becomes the next Chairman of the Supervisory Board at the Annual General Meeting of Shareholders on 11 May 2021. The European Exchange Operator however announced on February 15 that is Supervisory board had nominated Piero Novelli an independent member of the Supervisory Board, to become the next Chairman of Euronext N.V., which is subjected to regulatory and shareholder approvals.
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