LONDON, June 23: The London Stock Exchange confirmed on Saturday it was buying the Borsa Italiana for 1.6 billion euros ($2.15 billion) in shares, according to a joint statement.

Under terms of the deal, Borsa Italiana shareholders will be offered 4.90 LSE group plc ordinary shares for each existing Borsa Italiana ordinary share, the two bourses said.

Based on share prices and exchange rates of June 19, the offer values Borsa Italiana at 1.634 billion euros and represents a value of 100.7 euros per Borsa Italiana share.

The board of the combined company would have 12 members, seven from the LSE and five from Milan-based Borsa Italiana.

The LSE board believes it will have “more than sufficient support from its shareholders” for the merger.

The combined worth of companies quoted on the two bourses will be around 3.8 trillion euros, according to figures at the end of May from the Federation of European Securities Exchanges.

That would make the merged group the first in Europe, ahead of Euronext.

The deal allows the LSE to strengthen its position amid takeovers of European stock markets by US rivals.—AFP