Funds Group Nexi Extends $8 Billion Nets Merger Talks

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MILAN: Italy’s greatest funds group Nexi has prolonged its unique merger talks with Nordic rival Nets to Nov. 16, it stated on Wednesday because it reported stronger-than-expected third-quarter earnings.

Nexi entered the unique discussions in early November over a possible $8 billion deal, which might comply with an settlement struck with Milan-based SIA only a month in the past for a multi-billion merger to create an Italian champion.

Talks between Nexi and Nets over an all-share merger, introduced on Nov. 2, have been initially attributable to final 10 days.

Nexi CEO Paolo Bertoluzzo advised analysts discussions have been progressing properly however a bit extra time was essential to finalise “just a few issues” earlier than closing the transaction.

“We’re very eager to make it occur, each side,” he stated.

Reporting quarterly outcomes, Nexi stated there had been a rebound in revenues in the summertime months as financial exercise in Italy picked up after a nationwide COVID-19 lockdown, however that transaction volumes had slowed once more in October.

The Rome authorities has been pressured to introduce progressively tighter measures to combat a resurgence of the pandemic, together with focused lockdowns within the worst-hit areas.

Nexi, whose high investor as soon as the SIA tie-up goes by will likely be Italian state lender CDP, serves round 900,000 stores and manages 41.6 million cost playing cards in partnerships with banks.

It stated it was higher positioned to face the second wave of the pandemic, helped by a shift in direction of digital funds amongst shoppers.

Nexi’s third-quarter revenues rose 1% to 276 million euros, helped by the acquisition in June of Intesa Sanpaolo’s retailers’ cost enterprise. Earnings earlier than curiosity, tax, depreciation and amortisation (EBITDA) elevated by 7% to 167 million euros.

“Nexi’s … outcomes level to a beat throughout the board with revenues round 2% forward of consensus and EBITDA round 4%,” Jefferies stated in a notice.

“Firm reiterates aspirational 2020 goal of round 600 million euros of EBITDA.”

Nexi shares closed down 0.9%.

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