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CVC in talks over stake in Recordati pharma business

Business Opportunity JIACC

Private equity group CVC is in advanced discussions to acquire a controlling stake worth more than €3bn in the pharmaceutical business of Italy’s billionaire Recordati family, according to three people familiar with the transaction.

Source: Financial Times – A deal, which people close to the talks say could be reached before the end of the month, would boost confidence about investing in Italy, where market jitters about the new populist government have hit Italian stocks and bonds in recent weeks. Negotiations are ongoing and a deal may still fall apart, the people said. A successful conclusion of the talks hinges on the ability of disparate strands of the Recordati dynasty to co-operate, they added. Earlier reports had said CVC was reassessing its interest in the business amid growing political uncertainty in Italy. But after the formation of a coalition government earlier this month, the deal is back on, said people following the process. People with direct knowledge of the deal said it could be clinched by the end of the month but warned that deals involving families tend to be more complicated. The deal would follow several high profile sales by Italian corporate dynasties of stakes in their family empires. Fashion family Missoni last week announced it was selling a minority stake to Fondo Strategico Italiano, a private equity group backed by Italy’s Treasury-owned national promotional bank Cassa Depositi e Prestiti. In March, Luxottica, the global eyewear maker founded and majority owned by Italian entrepreneur Leonardo del Vecchio, was given the green light by the EU’s competition commission to merge with French lensmaker Essilor, creating a €50bn global group. Missoni, Luxottica and Recordati share concerns about succession a motivation for seeking buyers.

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