Italy's Lottomatica slumps on plans to take over Spain's Cirsa

Cirsa Enterprises SAU

02/09/2026 09:14

** Shares in Italy's Lottomatica LTMC.MI drop about 9% as it plans to take over  Spain's Cirsa CIRSA.MC, valuing it at about €2.8 billion ($3.2 billion) according to Reuters' calculations
** The all-share deal will see Cirsa's shareholders receive 0.668 Lottomatica's shares per Cirsa share
** Cirsa's shares jump about 16%
** "The market was taken by surprise by this change in strategy," a Milan-based trader says
** Jefferies says that Lottomatica investors "will likely need some convincing" around the benefits of the merger
** Investors "will likely focus on the dilution to the current online growth/Italy pure-play story", the brokerage says, although it also points to the commitment for cash return from both operators 
** For J.P. Morgan the proposed merger seems "appealing" with expected synergies of €115 million seen as credible
($1 = 0.8639 euros)

(Reporting by Anna Uras and Tiago Brandao)
((anna.uras@thomsonreuters.com))