Fintech, the EU gives ok to Enel and Intesa Sanpaolo to acquire Mooney

According to the Commission, "the operation does not raise competition concerns". A European digital finance company is born, able to manage proximity services and telematic payments, including electricity bills and innovative mobility solutions 20 Jun 2022 Patrizia Licata journalist

EU Antitrust Authority gives the green light to Enel and Intesa Sanpaolo for the acquisition of the fintech company Mooney and PayTipper, CityPoste payment, Enex X financial services and Junia insurance (together "the Compendium"): the European Commission has concluded that the proposed transaction would not raise competition concerns, given "the moderate combined market positions of the resulting companies the transaction and the market presence of several alternative payment service providers". The goal of Enel and Intesa with this acquisition is to create a European fintech able to provide proximity services and to manage the electronic payment of electricity bills. Mooney provides payment services through point of sale and its own digital platforms in Italy, while the companies of the "Compendium" provide payment services for taxes and utilities. The closing is scheduled for the end of the second quarter of 2022. Index of topics • The agreement between Enel X and Intesa Sanpaolo • Mooney's services: payments, mobility, energy The agreement between Enel X and Intesa Sanpaolo To acquire Mooney, Enel X and Intesa Sanpaolo have signed an agreement with Schumann Investments, a subsidiary of the international private equity fund Cvc Capital Partners Fund VI, for the acquisition of 70% of the share capital of the fintech company operating in proximity banking and payments services. In particular, Enel X will acquire 50% of mooney's share capital, while Banca 5 (controlled by Intesa Sanpaolo), which currently already holds 30% of Mooney's share capital, will increase its stake to 50%, thus creating joint control of both parties over Mooney. Following the closing, all of Enel X's financial services business in Italy, marketed under the Enel X Pay brand, will be sold to Mooney. In particular, Enel X will sell to Mooney, for a consideration of 140 million euros, the entire share capital of Enel X Financial Services, CityPoste Payment and Paytipper (subject to the exercise by Enel X of the call option to increase its stake in the latter company from the current 55% stake). In this way, a joint European fintech will be created, with an already solid customer base. These operations are in line with the Enel Group's 2022-24 Strategic Plan and are part of the Stewardship model. Mooney's services: payments, mobility, energy The transaction has an important industrial value thanks to the creation of a partnership between Intesa Sanpaolo and Enel, which will accelerate the growth and development of Mooney, in proximity and digital payment services, as well as in those related to mobility and the energy sector. Mooney, further strengthened following the completion of this transaction, will continue to play an important role for the Intesa Sanpaolo Group, ensuring the bank's customers have easy, fast and secure access to a wide range of payment transactions. "This acquisition represents a good growth opportunity for us in the fintech segment that goes well with the new industrial vision of the Enel group, considering that digital payments are increasingly used for electricity bills and advanced services that go beyond the mere supply of electricity, such as electric mobility", said Francesco Starace, CEO and General Manager of Enel, which controls Enel X, at the time of the proposed acquisition. For Carlo Messina, CEO of Intesa Sanpaolo, "Mooney is a fundamental component for the development of our advanced digital strategy, which will be one of the pillars of the next business plan, aimed at our retail customers who strongly appreciate proximity and flexibility. As a Group, we will benefit from the innovative capabilities and growth potential of a European fintech, while reducing the costs related to a service dedicated to those customers who least need to go to our branches".