M&A in the Italian context during the 2022

The M&A market in Italy in 2022 has proven to be resilient and particularly active despite unfavourable conditions.

Article written by Tommaso Tagliabue, member of Liuc Finance & Investment Club.

Introduction Surely 2022 for dealmakers was not an easy context. Between the war, rising inflation and rising interest rates by central banks, the economic scenario has not been the best. Despite the unfavorable conditions, the M&A market has recorded levels in line with those of the pre-pandemic period.

Overview 2022 The Mergers & Acquisitions market in the Italian context with an uncertain scenario, from a macroeconomics’ and geopolitical point of view, has proven to be resilient and particularly active. In 2022, 1.184 transactions were concluded, thus recording a - 2.5% compared to the 1.214 transactions in the same period last year, for a turnover of approximately 80 billion euros, compared to 100 billion in 2021. Bearing in mind, that the latter value was affected by the important deal of Stellantis, which affected about 20 billion. Financial investors have been particularly attracted to the world of infrastructure and energy resources during this year. Even the sector that most characterizes the Italian context, textile-fashion, was particularly attractive for investors.

A year characterized not only by the activity of local investors but also by foreign investors who have shown interest in national realities. In fact, there was an increase both in volumes, +15% in 2021 (421 transactions), and in terms of turnover, +67% compared to 2021 (29 billion).

Private Equity An important role is always played by Private Equity, which focuses on supporting entrepreneurs in the paths of external growth and internationalization. In fact, during 2022, 131 PE transactions worth around €19 billion were concluded. An increase compared to the previous year where the value that had been recorded was 12.1 billion.

Support Service and infrastructure A significant transaction was certainly the purchase of approximately 88% of Autostrade per l'Italia, for a consideration of over 8 billion euro, by Holding Reti Autostradali S.p.A. In addition to this, there is also the takeover bid by Holding Schema Alfa of Edizione and Blackstone of about 70% of Atlantia. Operation that had as its objective the delisting of the company from the FTSE Mib.

Financial Services Following the Support Service and Infrastructure is the Financial Services sector, which has exceeded 100 transactions for a value of almost 20 billion. Value driven by classic acquisitions in the banking and insurance environment, such as the acquisition of PartnerRe by Covea (approximately 8 billion deals) and all the operations that took place in Fintech and Insurtech.

Energy&Utilities In third place we find the energy sector, positively influenced by the European Green Deal aimed at increasing the use of renewables and energy efficiency. Transactions worth mentioning are certainly the sale of Enel Trasmission Chile to the Inversions Grupo Saesa Ltda group for a value of 1.3 billion euros and the sale of Saipem's Onshore Drilling to the English group KCA Deutag.

Textiles An element that attracts foreign investors we said is the Textiles, which with the operations that took place during the year is increasingly consolidated along the production chain. Examples include Chanel which enters the capital of Fashion Art, Christian Dior in Artlab, Brunello Cucinelli in Lanificio Cariagi and the various acquisitions that have taken place at the level of investment funds.

Return to the private Not to be overlooked are also the operations that have been implemented with the aim of delisting the companies. In fact, 18 companies have returned to being private, of which 16 through a Takeover bid for a countervalue of 15 billion. Among the transaction we must mention Atlantia and Autostrade per l'Italia.

Outlook 2023 According to several analysts, 2023 could be an eventful year for the M&A market. For example, Autogrill and Dufry are expected to be integrated by the first quarter of the year. In addition to this, movements abroad are also expected, such as: the acquisition by the Ferrero Group of Wells Enterprises, which continues its expansion in US, and Barilla which has announced its intention to buy Back To Nature While. While, towards the end of the year, the acquisition by Ariston Group of Centrotec Climate System for a value of 700 million is expected to be finalized.