Euronext and CDP Equity confirm exclusive talks with LSEG to acquire Borsa Italiana

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EURONEXT AND CDP EQUITY CONFIRM EXCLUSIVE TALKS WITH LSEG TO ACQUIRE BORSA ITALIANA

Amsterdam, Brussels, Dublin, Lisbon, Oslo, Paris and Rome – 18 September 2020 – Euronext and CDP Equity (“CDPE”, 100% owned by Cassa Depositi e Prestiti) confirm they have entered into exclusive talks with London Stock Exchange Group plc (“LSEG”) to acquire Borsa Italiana group, together with Intesa Sanpaolo. There can be no certainty that this will lead to a transaction.

The proposed combination of Borsa Italiana and Euronext would create a leading player in continental European capital markets. This transformational project would position the newly formed group to deliver the ambition of further building the backbone of the Capital Markets Union in Europe, while at the same time supporting local economies.

Italy, through Borsa Italiana, would become the largest revenue contributor to the enlarged Euronext group. As a new major country in the Euronext federal model, Italy would be represented at group level of Euronext governance by Italian representatives, in the Reference Shareholders, the Supervisory Board, the Managing Board and the College of Regulators supervising Euronext group’s activities.

If the discussions lead to the successful completion of the transaction, and as part of the partnership entered on 11 September 2020¹,  CDP Equity and Intesa Sanpaolo would join the existing group of Euronext long-term Reference Shareholders² through the subscription of a reserved capital increase, with CDPE acquiring a stake in line with those held by the largest reference shareholders of Euronext, and having a representative at the Supervisory Board of Euronext. A second Italian candidate would be proposed as an independent member of the Supervisory Board and would become the Chairman of the combined group. Consob would be invited to join Euronext’s College of Regulators, becoming part of the supervision of Euronext at group level pari passu with other European regulators with a rotating chair every semester. Direct regulatory oversight of Borsa Italiana would remain unchanged allowing Consob and Banca d’Italia to continue directly supervising Borsa Italiana’s activities.