Euronext and CDP Equity have initiated discussions with the London Stock Exchange Group (LSEG) to acquire Borsa Italiana Group.

Euronext interests in Borsa Italiana is to compete to be the leading player in the continental European capital markets.

If the transaction were to be completed, Italy, through the assistance of Borsa Italiana, would become the largest revenue contributor to the enlarged Euronext group.

The LSEG is currently awaiting a review by the European Commission for the $27bn acquisition of Refitiv, however, the sale of Borsa Italiana would be dependent on the result of this review.

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Borsa Italiana would maintain its current functions, structure and relationships within the Italian ecosystem and preserve its Italian identity.

Rafaelle Jerusalmi, CEO of Borsa Italiana, would also join the managing board of Euronext.

CDP Equity and Intesa Sanpaolo would join the existing group of Euronext reference shareholders, with CDP Equity acquiring a stake in line with those held by the largest shareholders of Euronext.

The firm would also have a representative at the supervisory board of the Euronext.

The terms of any transaction remain subject to the three partners’ managing board and supervisory board approvals.

Borsa Italiana has seen numerous ETF issuers enter the Italian market in recent years including fixed income ETF specialist Tabula Investment Management which listed its investment grade bond ETF on the exchange at the beginning of September.