Spain: Mediaset shares drop following merger announcement

Mediaset España shares closed Monday’s session with a 5.35% drop to 6.54 euros after announcing a merger with its Italian parent company to create a European television giant. On the contrary, the shares of said parent company saw an increase equivalent to 4,23%

The transaction will be carried out through a cross-border merger in Mediaset Investment, a subsidiary of the Italian firm based in the Netherlands. After the merger, the company would change its name to be called Media For Europe (MFE). Despite the change, Mediaset has said the companies will maintain their activity both in Italy and in Spain.

MFE will be the parent company of the group and will concentrate all the assets, liabilities and legal responsibilities of Mediaset and Mediaset España, who “consequently will cease to exist as independent entities”.