Full Breakdown
Italian Authorities Seize €1.3 Billion in Campari Shares Over Tax Evasion Allegations
11/1/2025, 8:10:13 PM
Overview of the Seizure
Italian financial police have seized shares valued at €1.3 billion ($1.5 billion) from Lagfin, a Luxembourg-based holding company that controls the Campari Group, amid allegations of tax evasion. The seizure is part of an ongoing investigation initiated by Milan prosecutors, which has revealed approximately €5.3 billion in undeclared capital gains from 2018 to 2020 that were not subjected to Italy's exit tax, a levy imposed on companies transferring assets abroad.
Background of the Investigation
The investigation stems from a merger involving Lagfin and its Italian subsidiary, which allegedly failed to declare significant capital gains during the restructuring. Authorities suspect that Lagfin transferred its Italian assets to foreign ownership primarily for tax advantages. This has raised concerns about compliance with Italian tax laws, prompting the financial police to act.
Key Figures Involved
Luca Garavoglia, chairman of Campari, and Giovanni Berto, head of Campari's Italian operations, are reportedly under investigation. Both individuals are said to be cooperating with the authorities. Lagfin, which holds more than 50% of Campari shares and 80% of its voting rights, has stated that it will "defend itself vigorously" against the allegations, asserting that it has always adhered to applicable laws.
Company Response and Position
In response to the seizure, Lagfin emphasized that the situation is a "tax dispute" and that Campari Group has not been involved in any wrongdoing. The company maintains that the asset seizure will not affect its position as the controlling shareholder of Campari. Campari Group, known for its brands including Aperol, Grand Marnier, and Wild Turkey, has a market capitalization of approximately €7 billion on the Milan Stock Exchange.
Implications of the Seizure
The confiscation of shares signals a serious approach by Italian authorities towards tax compliance among large corporations. Given Campari's stature as one of the largest global spirits producers, any legal challenges could have significant repercussions for its operations and market reputation.
Criticism & Opposition
Critics of the investigation have raised concerns about the potential impact on Campari's business operations and its employees. While Lagfin asserts its compliance with tax laws, the ongoing scrutiny may affect investor confidence and public perception of the brand.
What's Next?
The investigation into Lagfin's alleged tax evasion is ongoing, with authorities continuing to examine the financial dealings related to the merger. The outcome of this probe could lead to further legal actions or reforms in corporate tax practices in Italy.
Verbatim Quotes
- “always acted in the most scrupulous respect of any applicable laws and regulations, including any Italian tax laws” — Lagfin Statement
- “connected to a tax dispute that started approximately two years ago and has never involved Campari Group in any manner whatsoever.” — Lagfin Statement
