(Bloomberg) -- The billionaire Benetton family's motorway and airport company Atlantia SpA is poised to become the target of a bidding war in what could be this year's biggest deal.
U.S. buyout giant Blackstone Group Inc. is discussing teaming up with the Benettons to take Atlantia private, according to people familiar with the matter, while Spanish construction tycoon Florentino Perez said it's partnering with Global Infrastructure Partners and Brookfield Asset Management Inc. on a potential bid.
The interest from Perez and several investment firms, first reported by Bloomberg News, sent Atlantia shares surging before they closed up 2.5%, giving the Italian infrastructure firm a market value of 15.7 billion euros ($17.1 billion).
Atlantia has an enterprise value of more than 62 billion euros including debt, according to data compiled by Bloomberg, which would make it the biggest deal of the year so far if completed with a premium, ahead of Microsoft Corp.'s purchase of Activision Blizzard Inc. By that measure, it would also rank as one of the biggest infrastructure deals of all time.
Actividades de Construccion y Servicios SA, the Madrid-based builder known as ACS of which Perez is both chairman and the top shareholder, said in a regulatory filing after the Bloomberg News report that it has an exclusive agreement with GIP and Brookfield to bid for Atlantia. Perez's firm, which would acquire the majority of Atlantia's toll-road business as part of the deal, added that no final decisions have been made.
Government Scrutiny
Any takeover would be difficult without the agreement of the Benettons, who already own 33% of Atlantia, and could draw scrutiny from the Italian government. The industrialist clan strengthened its grip on Atlantia by boosting its stake after the 8 billion-euro sale of the company's Italian highway-toll unit, Autostrade, last year. That incoming cash as well as huge appetite for infrastructure assets triggered the interest, the people said.
Investors continue to pour money into infrastructure, drawn by the stable, recurring returns these assets can generate. GIP is in talks to raise the world's biggest pool of capital dedicated to the sector, Bloomberg News reported in February, while Blackstone last year reopened a flagship infrastructure fund to new money.
In Italy, Atlantia controls Aeroporti di Roma SpA, which runs Rome's airport, and it's a shareholder in Bologna airport. It also has hubs in Nice and Saint-Tropez in France. Atlantia is among the top shareholders in Getlink SE, the owner of Channel Tunnel operator Eurotunnel.
Joint Ownership
Perez and the Benettons already have ties through their joint ownership of Abertis Infraestructuras SA, the Spanish highway operator. Representatives for Atlantia and Blackstone declined to comment. A spokesperson for the Benetton's Edizione Srl declined to comment on Perez's interest, and wasn't available to comment on Blackstone when contacted outside business hours.
While Perez would seek to team up with the family on a deal for Atlantia, he may also consider a hostile bid, the people said. ACS previously considered an offer for Autostrade, before the toll operator was eventually sold to an investor group led by Italian state-backed lender Cassa Depositi e Prestiti SpA.
Atlantia has been refocusing on expansion and diversification plans, having been under fire ever since 43 people died in a 2018 bridge collapse in Genoa on a roadway managed by Autostrade. Alessandro Benetton was appointed chairman of Edizione in January to help refocus the family's business.
Siemens Deal
That month, the company agreed to buy Siemens AG's road-traffic business in a 950 million-euro deal. It's also targeting investments in the mobility sector as technology and digital services become more important across transportation networks.
Edizione views Atlantia as a long-term strategic asset, according to a person with knowledge of the company.
Outside of construction, Perez is best known as the president of Spanish football club Real Madrid. He was one of the leaders of a group of football teams that proposed the creation of a new European Super League last year. The plan quickly disintegrated after fierce opposition from fans and politicians, including those in Italy.
©2022 Bloomberg L.P.
With assistance from Bloomberg
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