Italian Police Seize €1.3bn Campari Shares Over Tax Evasion Probe

Post by : Raina Nasser

Italian authorities have seized €1.3 billion (£1.1 billion; $1.5 billion) worth of shares from Lagfin, the company controlling the famed spirits manufacturer Campari, in a high-profile tax evasion investigation. The move follows a year-long probe into Lagfin’s acquisition of its Italian operations, during which prosecutors allege the company failed to pay an equivalent amount in taxes.

Lagfin, based in Luxembourg and holding over 50% of Campari’s shares along with 80% of its voting rights, stands accused of avoiding an “exit tax” levied on firms that relocate their headquarters abroad. The Italian financial police claim that between 2018 and 2020, Lagfin failed to declare €5.3 billion in capital gains, triggering the hefty seizure. Officials further allege that the transfer of Campari’s Italian assets into foreign ownership was solely motivated by tax avoidance.

While Campari itself, renowned for its iconic brands including Aperol, Grand Marnier, and Courvoisier, has emphasized that neither it nor its subsidiaries are involved in the investigation, the case has implicated key figures. Luca Garavoglia, Campari’s billionaire chairman and heir to the family legacy, alongside Giovanni Berto, head of Campari’s Italian division, are reportedly under scrutiny by Milan prosecutors.

Lagfin has categorically denied any wrongdoing, asserting that it has always complied with all applicable laws, including Italian tax regulations. The firm described the case as a “tax dispute” and pledged to defend itself vigorously. It also insisted that the share seizure would not impact its control of Campari or its position as the majority shareholder.

Campari is one of the world’s largest producers of spirits, valued at approximately €7 billion on the Milan Stock Exchange. The company traces its roots back to 1860, when Gaspare Campari created his famous bitter liqueur in Milan. Over the decades, Campari evolved from a local favorite to a global brand, expanding through acquisitions from the 1990s onward.

This tax evasion probe adds to increasing scrutiny on multinational companies managing cross-border mergers and asset transfers. Authorities across Europe have intensified efforts to clamp down on tax avoidance, sending a clear message to corporations about financial transparency and compliance.

As the legal proceedings unfold, investors and industry watchers will closely monitor developments, given the significant financial and reputational stakes involved for both Lagfin and the Campari Group