Business
Cinven secures Italian nod to sell minority stake in Synlab to Labcorp
Global Banking & Finance Review®
Company
ROME (Reuters) – Private equity firm Cinven secured a conditional approval from Italian authorities over its plan to sell a 15% stake in diagnostic service provider Synlab to laboratory operator Labcorp, a government document sent to parliament showed.
Golden powers legislation requires Italian government approval for any decision which results in changes in the ownership, control or availability of strategic assets in the country.
Italy’s cabinet authorised the transaction on Nov. 12 with some unspecified conditions, according to the document.
Announced in September, the deal is worth some 150 million euros ($158.48 million).
($1 = 0.9465 euros)
(Reporting by Giuseppe Fonte, Editing by Louise Heavens)
Private equity refers to investment funds that buy and restructure companies that are not publicly traded. Investors in private equity typically seek to improve the company's profitability before selling it for a profit.
A minority stake is a shareholding in a company that is less than 50%. This type of investment does not provide the investor with control over the company but can still offer financial returns.
Conditional approval is a type of approval granted by regulatory authorities that allows a transaction to proceed under certain specified conditions. It often requires further actions or compliance before final approval.
A strategic asset is an asset that is considered crucial for a company's long-term success and competitive advantage. These assets can include technology, intellectual property, and key personnel.
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