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Italy approves BlackRock holding more than 3% in Leonardo

Published 09/23/2024, 12:36 PM
Updated 09/23/2024, 02:05 PM
© Reuters. FILE PHOTO: The BlackRock logo is pictured outside its headquarters in the Manhattan borough of New York City, New York, U.S., May 25, 2021.  REUTERS/Carlo Allegri/File Photo
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ROME (Reuters) -Italy has approved BlackRock (NYSE:BLK), the world's biggest asset manager, holding a stake of more than 3% in Italian defence and aerospace group Leonardo, a document seen by Reuters showed on Monday.

The document, sent by Italian Prime Minister Giorgia Meloni's office to parliament, deals with so-called "golden power" decisions.

Rome has "golden powers" to block or set conditions on foreign and domestic investments, as well as governance changes, involving companies that operate in strategic sectors such as energy, telecoms, defence and banking.

"I am happy for the interest of BlackRock. It is an important recognition," Leonardo chief executive Roberto Cingolani told Reuters.

The cabinet granted the authorisation to BlackRock on Sept. 18 while also imposing some unspecified conditions, according to the document.

Under Italian legislation, Meloni's office must approve share ownership in any strategic firm which is also listed on the Milan stock exchange when the stake crosses thresholds set at 3%, 5%, 10%, and various other intervals up to 50%.

However, a source familiar with the matter told Reuters BlackRock was expected to trim its stake in a short time, as Leonardo's bylaws stipulate that no investor outside the public administration can own more than 3% of capital.

© Reuters. FILE PHOTO: The BlackRock logo is pictured outside its headquarters in the Manhattan borough of New York City, New York, U.S., May 25, 2021.  REUTERS/Carlo Allegri/File Photo

Italy's economy ministry owns 30.2% of Leonardo, the country's leading defence group as well as a manufacturer of satellites and orbiting infrastructure.

BlackRock is also a leading investor in Italy's financial sector, holding 7% of UniCredit and 5% of Intesa Sanpaolo (OTC:ISNPY), the country's top two banks.

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