# Factbox: Companies potentially affected by Italy’s election Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2022-09-26 Category: NEWS Category URL: https://financedigest.com/category/news Meta Title: Italian Election Results: Winners and Losers Among Companies Meta Description: Find out which companies like Intesa Sanpaolo and Enel are vulnerable to changes in Italy's new government and its impact on the economy. URL: https://financedigest.com/factbox-companies-potentially-affected-by-italys-electionhtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2022-09-25t214134z1lynxmpei8o0a3rtroptp4italy-election-1736815157882-compressed.jpg) (Reuters) – A right-wing alliance led by Giorgia Meloni’s Brothers of Italy party looks set to win a clear majority in the next parliament, exit polls said on Sunday after voting ended in an Italian national election. Here is a list of companies that could be affected by the outcome of the election. BANKS —– The fall of Prime Minister Mario Draghi’s government has weighed on Italian [banking shares](https://www.financedigest.com/bank-shares-rise-after-credit-suisse-rescue-eases-crisis.html "Bank shares rise after Credit Suisse rescue eases crisis"). Exposed to higher Italian [debt yields due to their large holdings of sovereign](https://www.financedigest.com/analysis-no-china-no-deal-bid-to-break-sovereign-debt-logjams-gets-weary-thumbs-up.html "Analysis-No China, no deal: Bid to break sovereign debt logjams gets weary thumbs up") bonds as well as through their cost of funding, banks are also vulnerable to a worsening of the economic outlook. The change of government and calls by Meloni to revisit Italy’s national recovery [plan could threaten Italy’s ability to meet the commitments to which European Union post-pandemic funds](https://www.financedigest.com/uk-drops-plan-to-tax-sovereign-wealth-funds.html "UK drops plan to tax sovereign wealth funds") are tied. INTESA SANPAOLO Italy’s [top bank is the second biggest](https://www.financedigest.com/top-ten-biggest-mistakes-by-novice-investors-and-how-to-avoid-them.html "TOP TEN BIGGEST MISTAKES BY NOVICE INVESTORS – AND HOW TO AVOID THEM") holder of Italian debt after the European Central Bank, and CEO Carlo Messina has repeatedly called for Rome to use its high level of private wealth and state assets to sustain its debt, achieving “financial independence. UNICREDIT A new government may offer a clean slate to [CEO Andrea Orcel after he walked away from the proposed acquisition](https://www.financedigest.com/chipmaker-infineon-ready-to-spend-billions-on-acquisitions-ceo.html "Chipmaker Infineon ready to spend billions on acquisitions – CEO") of Monte dei Paschi di Siena damaging relations with then Prime Minister Draghi’s government. [MONTE DEI PASCHI](https://www.financedigest.com/monte-dei-paschi-to-have-underwriting-consortium-for-share-sale-by-tuesday-source.html "Monte dei Paschi to have underwriting consortium for share sale by Tuesday – source") The formation of the new government will provide the backdrop to the state-owned bank’s latest cash call in October, which [hits markets](https://www.financedigest.com/tech-earnings-hit-pause-button-on-market-rally.html "Tech earnings hit pause button on market rally") at a difficult juncture. The new government will also face the commitment to re-privatise the bank, after the previous executive secured a years-long extension of an end-2021 deadline to [cut Rome’s 64% stake](https://www.financedigest.com/sap-to-cut-3000-jobs-explore-qualtrics-stake-sale.html "SAP to cut 3,000 jobs, explore Qualtrics stake sale") in the bank. ENERGY/UTILITIES —————- Italy has introduced measures to [tax energy](https://www.financedigest.com/britains-tax-take-risks-blowing-green-energy-off-target.html "Britain’s tax take risks blowing green energy off target") companies to help fund schemes to shield firms and families from surging power costs. The rightist coalition’s manifesto supports the proposal of a Europe-wide energy [price cap](https://www.financedigest.com/factbox-u-s-offers-new-details-on-plan-to-cap-russian-oil-prices.html "Factbox-U.S. offers new details on plan to cap Russian oil prices"), an idea put forward by the current administration that still lacks broad support in Europe. The right also wants to negotiate with Brussels [changes to Italy’s Recovery Plan](https://www.financedigest.com/exclusive-olympics-paris-2024-plans-games-relay-changes-fewer-torches-source.html "EXCLUSIVE-Olympics-Paris 2024 plans Games relay changes, fewer torches-source") to increase spending to tackle the energy crisis and relaunch investments in nuclear energy. ENEL, ENI Meloni [ruled out taking full control of national energy](https://www.financedigest.com/bank-of-england-publishes-rules-for-energy-firms-liquidity-tool.html "Bank of England publishes rules for energy firms’ liquidity tool") groups Eni and Enel, as the French government has done with EDF, while reaffirming it is the government’s duty to shield nationally relevant assets and avoid foreign takeovers. The new government will decide whether to renew the contracts of the CEOs of Enel and Eni which both come up [next year](https://www.financedigest.com/next-years-geneva-auto-show-cancelled-organisers.html "Next year’s Geneva auto show cancelled -organisers"). SNAM The state-controlled gas grid operator in June bought a floating LNG regasification terminal (FSRU) to [support efforts to find alternative gas supplies](https://www.financedigest.com/oil-prices-hover-around-2014-highs-supported-by-supply-concerns.html "Oil prices hover around 2014 highs, supported by supply concerns"). Snam wants to start work to moor the terminal in Piombino, Tuscany, by the end of October. It aims to connect it to the gas [network by next](https://www.financedigest.com/a-network-of-networks-will-ceos-be-replaced-by-ai-in-the-next-10-years.html "A Network of Networks: Will CEOs be Replaced by AI in the Next 10 Years?") spring to increase LNG imports. The new [government could decide to slow down or accelerate the infrastructure which is already facing](https://www.financedigest.com/estonias-pro-kyiv-government-faces-election-test-amid-cost-of-living-crisis.html "Estonia’s pro-Kyiv government faces election test amid cost of living crisis") resistance from local authorities. DEFENCE ——- Meloni has spoken out strongly in support of the [Western alliance on Ukraine](https://www.financedigest.com/analysis-russian-gold-removed-from-some-western-funds-after-ukraine.html "Analysis-Russian gold removed from some Western funds after Ukraine") on a number of occasions, with pledges of boosting defence spending. LEONARDO [CEO Alessandro Profumo said on July 28 the state-owned defence group was working to reach](https://www.financedigest.com/deutsche-telekom-reaches-majority-stake-in-t-mobile-u-s-ceo.html "Deutsche Telekom reaches majority stake in T-Mobile U.S. – CEO") a deal for the sale of its OTO Melara cannon maker unit and its naval torpedo unit Wass, but needed a new government in Rome to be able to finalise any potential agreement. Like the CEOs of Eni and Enel, Profumo’s term comes up for renewal [next year](https://www.financedigest.com/austria-plans-to-bring-budget-deficit-within-3-of-gdp-next-year.html "Austria plans to bring budget deficit within 3% of GDP next year"). TELECOMS ——– [TELECOM ITALIA](https://www.financedigest.com/telecom-italia-in-talks-with-unions-on-up-to-2000-job-cuts-in-italy.html "Telecom Italia in talks with unions on up to 2,000 job cuts in Italy") (TIM) Brothers of Italy has called for a renationalisation of the telecoms group as part of plans to [create](https://www.financedigest.com/italy-jan-jobless-rate-edges-up-to-7-9-with-35000-jobs-created.html "Italy Jan jobless rate edges up to 7.9%, with 35,000 jobs created") a single broadband network in Italy by combining TIM’s landline grid with that of state-owned rival Open Fiber. That clashes with TIM [CEO Pietro Labriola’s strategy of selling](https://www.financedigest.com/hungarys-otp-bank-pressured-by-ukraine-to-sell-russian-unit-ceo-says.html "Hungary’s OTP Bank “pressured” by Ukraine to sell Russian unit, CEO says") TIM’s network to state lender CDP to focus on services. Brothers of [Italy welcomed CDP’s decision](https://www.financedigest.com/fico-provides-decisioning-platform-for-smartphone-only-buddybank-in-italy.html "FICO Provides Decisioning Platform for Smartphone-Only buddybank in Italy") to wait for the election before filing its non-binding bid for TIM’s network. RAI WAY State broadcaster RAI froze [talks on a potential](https://www.financedigest.com/virgin-orbit-says-space-startup-in-talks-with-potential-investors.html "Virgin Orbit says space startup in talks with potential investors") deal to combine its broadcasting tower unit Rai Way with rival firm EiTowers, partly owned by Italy’s top commercial broadcaster MFE, until after the election, sources have said. AIRLINES ——– [ITA AIRWAYS](https://www.financedigest.com/ita-airways-averts-strike-after-wage-increase-accord-with-unions.html "ITA Airways averts strike after wage increase accord with unions") On Aug. 31, Italy picked a [group led](https://www.financedigest.com/uks-morrisons-agrees-to-raised-9-3-billion-offer-from-fortress-led-group.html "UK’s Morrisons agrees to raised .3 billion offer from Fortress-led group") by U.S. private equity fund Certares, backed by Air France-KLM and Delta Air Lines Inc, for exclusive talks on [buying a majority stake](https://www.financedigest.com/mfe-offers-to-buy-1-05-stake-in-mediaset-espana-from-vivendi-ahead-of-delisting.html "MFE offers to buy 1.05% stake in Mediaset Espana from Vivendi ahead of delisting") in flagship carrier ITA Airways. Brothers of Italy has [called for the new government to be allowed to make a final](https://www.financedigest.com/final-call-for-entries-to-tech-start-up-accelerator.html "FINAL CALL FOR ENTRIES TO TECH START-UP ACCELERATOR") decision on ITA.. ($1 = 0.9993 euros) (Compiled by Alessandro Parodi, Enrico Sciacovelli and Luca Fratangelo, editing by Susan Fenton) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---