Atlantia makes €16.3bn bid for Spain's Abertis

Italian toll roads and infrastructure company Atlantia has made a €16.3bn cash-and-share offer for Spanish rival Abertis.

Atlantia said it would offer €16.50 per Abertis share, with the possibility for Abertis shareholders to opt in, in part or fully, for a partial share alternative based on an exchange ratio of 0.697 shares of Atlantia in exchange for each Abertis share tendered.

Atlantia said the deal would create the number one global transport infrastructure operator, with 14,095km of roads and €6.6bn of earnings before interest, taxes, depreciation and amortisation.

Chief executive officer Giovanni Castellucci said: "Should the offer be successful, the combined group will result in a very strong cash flow generation capacity and ability to invest, which together with our unique geographic presence, will allow us to be the most suitable partner to address the needs of the relevant institutions and customers in our countries of operation.

"The transaction will create the global leader in transport infrastructure. I am confident that the strong and integrated management team, which results from the combination of Atlantia and Abertis’ unique capabilities, will allow us to benefit from the substantial opportunities created by this transaction."

Abertis acknowledged the offer but said its board of directors will not comment on the matter until it is legally mandatory. "Meanwhile, the company will continue to operate on its business as usual basis, taking into account the restrictions derived from its duty of passivity," it said.

Credit Suisse and Mediobanca are acting as financial advisors to Atlantia.

Olivetree Financial said: "The rationale behind the deal is well -established, such a combination gives Atlantia (and the Benettons) a broader geographical exposure and gives Abertis a longer duration portfolio. Such a broader business mix should bring something to both sets of shareholders, allowing NewCo to compete for new assets in a much more efficient fashion."

At 1233 BST, Atlantia shares were up 2.6% to €24.85 and Abertis shares were down 0.6% to €16.36.