Italian Payments Giants Merging to Form Entity That Will Dominate Local Market

Nexi, Italy's biggest payments provider, is to merge with rival SIA, creating a group with an estimated 70% share of the local market.

According to Reuters, the firms announced the expected merger Monday, saying the new group is likely to bring in 1.8 billion euros ($2 billion) in annual revenue.
As well as eclipsing Italian rivals, the new group is planned to expand across Europe.
Merger talks have been ongoing for at least 18 months – held up by disagreements over valuation and governance of the new group, Reuters said.
The new group will handle around 120 million payments cards and manage payments for some 2 million merchants.
The Italian government, which has an indirect stake in SIA through Cassa Depositi e Prestiti (an investment bank dating back to 1850), will end up owning roughly 25% of the new group.
Nexi will own around 70% of the new entity after the merger.
Italy is behind other nations when it comes to digital payments infrastructure, but the coronavirus pandemic is helping drive change in the nation.
As long as certain conditions are met, the merger is expected to be completed by next summer, seeing the creation of a company with an expected market value of over 15 billion euros.

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