The CEO said in an interview last month that owning Borsa Italiana would mean Euronext would get more than a third of its revenue in Italy, surpassing France.
European competition regulators were anxious that following the Refinitiv deal, the LSE would have too large a hold on certain parts of the City's financial infrastructure. At £88.80, it is now close to 15% up year to date in the stock market after recovering from a low of £58 per share in March, when the impact of COVID-19 was at its peak.
"We believe the sale of the Borsa Italiana group will contribute significantly to addressing the EU's competition concerns", LSE Chief Executive David Schwimmer said in a statement.
Irish Stock Exchange owner Euronext has sealed a deal to buy Milan's stock exchange, catapulting the group to European pre-eminence.
The transaction, which will only take place if European authorities bless LSE's Refinitiv deal, also gives Paris-listed Euronext a clearinghouse for the first time as well as a securities depository, stock exchange and bond platform. CDP will have a 7.3% stake in Euronext at closing.
"The combination of Euronext and the Borsa Italiana Group, with the strategic support of long-term investors such as CDP8, delivers the ambition of building the leading pan-European market infrastructure, connecting local economies to global capital markets". In order to fund the acquisition, Euronext plans to issue 1.8 billion euros ($2.1 billion) in debt and raise 2.4 billion euros ($2.8 billion) in new equity.
Bloomberg LP, the parent of Bloomberg News, competes with Refinitiv to provide financial news, data and information.
Euronext's Boujnah said synergies from the deal would mainly be extracted from moving Borsa Italiana to Euronext's technology platform rather than through job cuts.
Market sources in Dublin believe the acquisition is good news for Ireland's status as a post-Brexit European financial centre and will encourage more Irish and worldwide companies to fund their growth via listings here.