Greek Minister of Nationwide Economic system and Finance, Kyriakos Pierrakakis, described the acquisition of the Athens Inventory Change by the European inventory market group Euronext as “one of many largest international investments in recent times”.
“For the Greek economic system as a complete, it is a decisive step ahead,” Pierrakakis stated from the ground of the Parliament.
The announcement of the all-share deal got here on Thursday, with the supply value €412.8 million.
“This is without doubt one of the largest international investments in recent times,” continued Pierrakakis.
“It strengthens our credibility and upgrades the nation’s place on the European and worldwide financial map. We’ll study the small print of the settlement and observe the progress of its implementation. Total, it is a extremely constructive growth, and undoubtedly a significant alternative for the nation as a complete.”
What it means for Greek companies
The mixing of the Greek inventory trade into Euronext’s European household opens a brand new gateway to financing for Greek corporations, at a vital time when worldwide competitors is rising and international commerce is being redefined.
Euronext is the biggest liquidity pool in Europe, managing round 25% of whole money fairness buying and selling exercise. It operates capital markets in main monetary centres resembling Amsterdam, Brussels, Dublin, Lisbon, Milan, Oslo and Paris.
It brings the next to Greece:
Entry to a wider funding base
Membership of a pan-European group gives Greek companies direct publicity to a a lot bigger community of worldwide buyers, each institutional and personal. This interprets into elevated liquidity for his or her shares and higher probabilities of success in future capital raises or bond issuances.
Know-how and digital instruments
Euronext has well-developed digital platforms, buying and selling instruments and compliance infrastructure that can help the technological modernisation of the Greek inventory trade. It will assist extra corporations and buyers to take part within the ecosystem.
Enhancing credibility and status
Participation in a community with a robust European presence might act as a “seal of credibility” for listed Greek corporations, making them extra enticing to international buyers.
Simpler entry for SMEs
Euronext’s give attention to small and medium-sized enterprises (SMEs), by initiatives such because the ‘Euronext Progress’ programme, might result in the event of easier and cheaper itemizing procedures for Greek SMEs.
Interconnection with different capital ecosystems
By means of Euronext, Greek corporations will achieve entry to different financing instruments resembling inexperienced bonds, ESG rankings, dividend reinvestment programmes.
What it means for the Greek economic system
The acquisition of the Greek inventory trade comes at an vital juncture for the Greek economic system, which continues to file vital GDP development (2.3% in 2024), but faces critical challenges.
The primary challenges embody the completion of the Resilience and Restoration Fund, the looming recession threatening the European economic system, and the necessity to change the nation’s manufacturing mannequin, with much less reliance on companies resembling tourism.
Greek companies want sources of funding to be able to develop past the Greek market, which is small and exhibiting indicators of fatigue by way of home consumption.
Moreover, regardless of the spectacular enhance in international direct funding over the past 5 years, the nation nonetheless suffers from a big funding hole, hindering the modernisation of the Greek economic system.