Euronext on Track to Complete Borsa Italiana Purchase by June

Euronext NV is on track to complete its acquisition of Borsa Italiana by June, according to the company.

The operator of the Paris stock exchange 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, as it reported fourth-quarter earnings Wednesday that beat analyst expectations.

London Stock Exchange Group Plc agreed to sell Borsa Italiana to Euronext and two Italian lenders for more than 4.33 billion euros ($5.1 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. 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% last year to 262.2 million euros as the pandemic fuelled volatility across equity markets. Fourth-quarter operating profit before exceptional items rose by more than a fifth to 111 million euros, beating a company-compiled analysts’ consensus estimate of 101.9 million euros.

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