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LSEG Agrees To Sell Borsa Italiana To Euronext For About EUR 4.3 Bln

London Stock Exchange Group plc (LSE.L) confirmed Friday that it has agreed to sell its entire shareholding in London Stock Exchange Group Holdings Italia S.p.A, the parent company of Borsa Italiana, to Euronext (ENXB.BE,ENX.BR,ENX.AS,ENX.PA) for an equity value of 4.325 billion euros, plus an additional amount reflecting cash generation to completion.

LSEG plans to use the net proceeds from the deal to repay indebtedness related to the Refinitiv Transaction and for general corporate purposes.

The transaction is conditional upon the divestment of the Borsa Italiana Group or a material part thereof being a condition of the European Commission's clearance decision for LSEG's proposed acquisition of Refinitiv.

LSEG said in late July 2020 that, in the context of the EC's Phase II review of the Refinitiv deal, it had commenced exploratory discussions which may result in a sale of LSEG's interest in MTS or potentially Borsa Italiana as a whole.

LSEG had concluded it was in the best interests of shareholders to divest Borsa Italiana as a whole. LSEG also noted the additional benefits of keeping the MTS and Borsa Italiana businesses together for their customers and stakeholders.

LSEG said on 18 September 2020 that it had entered into exclusive discussions with Euronext.

In June 2020, the European Commission opened an in-depth investigation to assess London Stock Exchange Group's proposed acquisition of US-based Refinitiv for competition concerns.

The EU then said the Commission was concerned that the deal may reduce competition in trading and clearing of various financial instruments and in financial data products. The Commission had 90 working days, until October 27, to take a decision.

It was in August 2019 that the LSE agreed to acquire Refinitiv in an all share transaction for a total enterprise value of about $27 billion

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