ROME – Italy has approved BlackRock (NYSE: BLK), the world’s biggest asset manager, holding a stake of more than 3% in Italian defense and aerospace group Leonardo, a document seen by Reuters showed on Monday.
The document, sent by Italian Prime Minister Giorgia Meloni’s office to parliament, deals with so-called “golden power” decisions.
Rome has “golden powers” to block or set conditions on foreign and domestic investments, as well as governance changes, involving companies that operate in strategic sectors such as energy, telecoms, defense, and banking.
“I am happy for the interest of BlackRock. It is an important recognition,” Leonardo chief executive Roberto Cingolani told Reuters.
On September 18, the cabinet granted BlackRock (NYSE: BLK) the authorization while imposing some unspecified conditions, according to the document.
Under Italian legislation, Meloni’s office must approve share ownership in any strategic firm listed on the Milan stock exchange. This approval is required when the stake crosses thresholds set at 3%, 5%, 10%, and various other intervals up to 50%.
However, a source familiar with the matter told Reuters BlackRock was expected to trim its stake in a short time, as Leonardo’s bylaws stipulate that no investor outside the public administration can own more than 3% of capital.
Italy’s economy ministry owns 30.2% of Leonardo, the country’s leading defense group. Leonardo also manufactures satellites and orbiting infrastructure.
BlackRock is also a leading investor in Italy’s financial sector, holding 7% of UniCredit and 5% of Intesa Sanpaolo, the country’s top two banks.
(Source: ReutersReuters)
