Dufry AG (SWX: DUFN) jumped 8% after agreeing to purchase Autogrill SpA from the Benetton family to create a new $6 billion enterprise in the travel and retail sector.
Benettos own 50.3% of Autogrill
As per a statement released early on Monday, the Benettons, who own 50.3 percent of Autogrill, will cede their ownership to Dufry in exchange for 0.158 new Dufry shares for every Autogrill share. After the merger, the Italian family might own up to 25% of the company.
The largest duty-free corporation in the globe, Dufry, will next make an offer for the remaining shares of Autogrill. Shareholders will receive either 0.158 new Dufry shares or €6.33 ($6.4253) in cash for every share of the Italian company. The Italian firm would be worth approximately €2.44 billion under the cash deal.
For months the Basel-based firm and the Benettons have been in discussions of a possible alliance. Bloomberg News first disclosed the transaction in April. Basel-based Following several informal attempts over the previous few years, Dufry and the Benettons have been discussing a possible alliance for months. The bid price for small investors is less than Friday’s Autogrill closing price.
The combined company was worth $6 billion when the deal was disclosed
When initial talks were initially revealed in April, the travel retail firm that would result from a combination between Benettons and Dufry had a total market worth of almost $6 billion. Xavier Rossinyol, chief executive officer of Dufry, will lead the combined company.
Alessandro Benetton, who assumed control of the family company Edizione Holding SpA early this year, has completed two significant transactions in recent weeks, the first being the merger with Dufry.
Dufry will appoint Alessandro Benetton as honorary chairman. Two of the family’s executives will be appointed as vice-chairs as well. Gianmario Tondato, CEO of Autogrill, will be in charge of business operations in North America.
Rossinyol said:
We are transforming our industry and redefining its boundaries, and we will create a new corporate identity to reflect this fundamental move.
The tourism sector has been recovering well from a difficult two-year period, and air travel counts are now inching closer to pre-pandemic levels, notwithstanding the recent round of turmoil at airports throughout Europe.
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