A rising tide: Italian M&A and PE activity in 2024, published in association with Gatti Pavesi Bianchi Ludovici, provides invaluable insights into M&A and private equity (PE) activity in Italy in the first half of 2024 and looks ahead at the outlook for the rest of the year.

Highlights include:

• Large-cap deals push up value as volume slows. A string of high-value deals across the technology, media and telecommunications (TMT), industrials and chemicals (I&C) and consumer sectors pushed the H1 total to €39.7bn – an impressive 177% increase over H1 2023’s €14.3bn. Deal volume, on the other hand, slowed in line with the European trend. A total of 565 transactions targeting Italian assets in H1 2024 marked a 9% decrease year-on-year.
• Telco consolidation generates top deal. The largest deal of the year so far took place in Italy’s highly competitive telecommunications space: Swisscom’s €8bn purchase of Vodafone’s Italian business. Swisscom is anticipated to merge the Italian telecoms business with its own subsidiary, Fastweb. If the deal passes regulatory approval, it will create Italy’s second-largest fixed-line broadband operator.
• Consumer sector defies European trend. With a total of €4.4bn-worth of deals changing hands, the sector posted a 61% value increase year-on-year. The largest deal was US PE firm L Catterton’s acquisition of a majority stake in family-owned make-up brand Kiko Milano. Valued at €1.4bn, the deal highlights the international appeal of one of Italy’s largest cosmetic brands.
• Italian PE market shows resilience. Italy’s PE market remained steadfast in H1 despite a tough financing climate. Driven by international investment, the value of private equity deals registered a 65% uplift year-on-year to reach €12.8bn. Deal volume, meanwhile, slowed in line with the European trend – from 123 to 113 over the same timeframe.