# Atlantia exit highlights Milan’s battle to retain market heavyweights Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2022-11-25 Category: NEWS Category URL: https://financedigest.com/category/news Meta Title: Milan Stock Market Exodus: Atlantia Buyout Adds to Bourse Meta Description: Discover how the buyout of Atlantia will impact the Milan stock exchange and fuel fears regarding its future, as Italy aims to revitalise its capital markets. URL: https://financedigest.com/atlantia-exit-highlights-milans-battle-to-retain-market-heavyweightshtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2022-11-25t060905z1lynxmpeiao040rtroptp4atlantia-m-a-1736814815335-compressed.jpg) By Elisa Anzolin MILAN (Reuters) – The buyout of Atlantia will cut another 19 billion euros ($19.5 billion) from the value of the Milan bourse and bring to 12 the number of companies to leave the stock exchange this year, fuelling fears about its standing. Legislators and regulators want to reverse the trend and reinforce the [role of the 200-year-old Borsa Italiana at the heart of Italian business](https://www.financedigest.com/the-evolving-role-of-the-cfo-from-scorekeeper-to-business-partner.html "The Evolving Role of the CFO: From Scorekeeper to Business Partner"). Barbara Lunghi, [head of equity listings Italy at market](https://www.financedigest.com/hsbc-appoints-new-markets-head-amid-wider-investment-bank-reshuffle.html "HSBC appoints new markets head amid wider investment bank reshuffle") owner Euronext, argues the scrutiny of being a listed business and having external investors pushes businesses to innovate and develop. It gives companies that extra gear that helps to [drive growth,”](https://www.financedigest.com/red-box-appoints-new-ceo-to-drive-growth.html "Red Box Appoints New CEO to Drive Growth") Lunghi said. But the problem has deep roots, with many of Italy’s family-run [businesses unwilling to relinquish control by listing their businesses unless they need cash](https://www.financedigest.com/europe-burns-cash-to-help-businesses-in-deepening-energy-crisis.html "Europe burns cash to help businesses in deepening energy crisis") for M&A or other expansion strategies. [Market watchdog Consob approved measures this year to simplify procedures for the approval of IPO](https://www.financedigest.com/porsches-blockbuster-ipo-is-no-gamechanger-for-europes-battered-markets.html "Porsche’s blockbuster IPO is no ‘gamechanger’ for Europe’s battered markets") prospectuses, including allowing them to be submitted in English. Also aiming to accelerate change, Italy this year started to study how to overhaul its listing, [voting and other rules to address the issues holding back the country’s capital](https://www.financedigest.com/parisians-vote-to-ban-e-scooters-from-french-capital.html "Parisians vote to ban e-scooters from French capital") markets – though this process was frozen by a change in government after a right-wing coalition won elections at the end of September. MILAN EXODUS So far this [year 11 companies](https://www.financedigest.com/companies-that-dont-upgrade-their-financial-processes-this-year-will-get-left-behind.html "Companies that don’t upgrade their financial processes this year will get left behind") have abandoned Euronext Milan, including the Agnelli family’s holding company Exor, which moved to the Amsterdam bourse in line with where it is legally registered. Road and airport operator Atlantia is leaving after a buyout by the Benetton family and Blackstone passed the 90% support threshold on Thursday. Travel [caterer Autogrill is expected](https://www.financedigest.com/contract-caterer-compass-expects-2023-profit-growth-to-top-20.html "Contract caterer Compass expects 2023 profit growth to top 20%") to be delisted after a merger with Switzerland’s Dufry, and the fate of shoemaker Tod’s remains uncertain after the failure of a buyout offer by its main shareholder. CNH Industrial, whose shares are [listed both in Milan and New York](https://www.financedigest.com/crh-shareholders-back-primary-listing-switch-to-new-york-from-london.html "CRH shareholders back primary listing switch to New York from London"), is also evaluating the possibility of putting an end to its dual listing and focusing on the NYSE. Taking listed companies private is a broader trend [shared by many European](https://www.financedigest.com/european-shares-hit-nine-month-high-dollar-wobbles-after-powell-remarks.html "European shares hit nine month high, dollar wobbles after Powell remarks") stock exchanges, as low prices and availability of cheap money made it convenient. [Milan market cap vs Paris and London](https://www.financedigest.com/london-fears-losing-luxury-shoppers-to-paris-and-milan.html "London fears losing luxury shoppers to Paris and Milan") – https://fingfx.thomsonreuters.com/gfx/mkt/lgvdkwalqpo/Milan%20stock%20market%20size.PNG FEW NEWCOMERS On the plus side, four companies joined the main Euronext Milan [market this year](https://www.financedigest.com/mclaren-to-enter-india-market-later-this-year.html "McLaren to enter India market later this year"), including truckmaker Iveco, which was the result of a spin off. Two other [companies upgraded from the smaller Euronext Growth](https://www.financedigest.com/ultimate-growth-for-sme-finance-company.html "Ultimate growth for SME finance company") Milan. The situation is healthier for Euronext Growth Milan itself, a [market dedicated to small](https://www.financedigest.com/ge-healthcare-rises-8-in-market-debut-eyes-small-deals.html "GE HealthCare rises 8% in market debut, eyes small deals") and medium-sized enterprises with minimum access requirements. In 2022 it counted 18 new listings, but the overall [market cap is very low](https://www.financedigest.com/high-quality-low-voltage-motors-market-recent-industry-developments-and-growth-strategies-adopted-by-players.html "High Quality Low Voltage Motors Market: Recent Industry Developments and Growth Strategies Adopted by Players"). A dearth of Italian IPOs is a perennial issue. Over the past 20 years, the main [market has lost 268 listed companies](https://www.financedigest.com/infrared-thermometer-market-2021-global-leading-companies-analysis-revenue-trends-and-forecasts-2026.html "Infrared Thermometer Market 2021 Global Leading Companies Analysis, Revenue, Trends and Forecasts 2026") and gained only 185, according to Intermonte research published in March. In contrast, the less regulated SME [market has attracted 263 listed companies and seen](https://www.financedigest.com/analysis-ecb-seen-struggling-to-keep-market-on-side-after-mixed-messages.html "Analysis-ECB seen struggling to keep market on side after mixed messages") 68 delistings. CULTURAL ISSUE The fact that there are relatively few listed [companies has its roots in the country’s history](https://www.financedigest.com/apple-makes-history-as-first-3-trillion-company-amid-tech-stock-surge.html "Apple makes history as first trillion company amid tech stock surge"), said Andrea Beltratti, professor of Political Economy at Milan’s Bocconi University. Beltratti said Italy lacks a long tradition of equity finance and its economy has been relatively [weak for the last 20 years](https://www.financedigest.com/uk-to-avoid-recession-this-year-but-outlook-still-weak-bcc-says.html "UK to avoid recession this year but outlook still weak, BCC says"). The heavy presence of [banks and other financial](https://www.financedigest.com/customer-engagement-trends-that-will-rule-banking-and-financial-services-in-2021.html "Customer Engagement Trends that Will Rule Banking and Financial Services in 2021") intermediaries in Italy has supplanted the role of the markets, so companies often preferred to ask them for funding. “The benefits of being listed are the ease of collecting capital and reputational (position), but there are also costs, associated with regulation, the need for transparency, and the many interactions with investors”, Beltratti said. I don’t think these are issues that can be [solved](https://www.financedigest.com/how-the-financial-services-industry-can-solve-the-issue-of-vulnerable-code.html "How the financial services industry can solve the issue of vulnerable code") in months or even years because it is a cultural issue,” Beltratti added.($1 = 0.9755 euros) (Reporting by Elisa Anzolin; Graphic by Danilo Masoni; Editing by Keith Weir and David Holmes) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---