Italian Authorities Seize $1.5 Billion in Campari Shares Amid Tax Evasion Probe

Shares of Campari, the Italian spirits company known for Aperol and its namesake bitter, dropped sharply on Monday after Italian tax police seized €1.29 billion ($1.5 billion) worth of shares held by its parent company, Lagfin. The seizure follows an investigation into alleged tax evasion related to undeclared capital gains when Lagfin moved its fiscal residence abroad. The amount seized represents nearly one-sixth of Campari’s current market value.

The financial police announced late Friday that they were taking control of the shares after a probe found €5.3 billion in capital gains that were not declared for tax purposes. Authorities allege that Lagfin failed to pay an exit tax, which is required when companies transfer their fiscal headquarters out of Italy. Lagfin, which is controlled by the Garavoglia family, has denied any wrongdoing and stated that it maintains more than 80% of Campari’s voting rights despite holding a 51% equity stake. The company said the precautionary seizure would not affect its position as controlling shareholder.

On Monday morning, Campari shares fell as much as 5% before recovering some ground, trading down 3.4% by midday in Milan. The group had a market capitalization of about €7.45 billion at Friday’s close. Campari itself said it is not involved in the investigation.

Analysts from Equita and Banca Akros noted that if prosecutors’ allegations are confirmed, the Garavoglia family might need to sell some Campari shares to cover the tax bill. This possibility could put downward pressure on the stock price in the near term. In similar past cases involving tax disputes, companies have often reached settlements with Italian authorities, resulting in lower payments than initially claimed. Mediobanca analysts estimate that Lagfin could end up paying between 25% and 40% of the original amount if a settlement is reached.

According to documents reviewed by Reuters, Campari Chairman Luca Garavoglia is among those under investigation for filing fraudulent tax returns, along with Lagfin SCA as a corporate entity. Garavoglia, who has led the company since 1994 and is now 56 years old, has not commented publicly on the specific allegations.

The investigation centers on a corporate restructuring in 2019, when Campari merged its original holding company Alicros, based near Milan, into Luxembourg-based Lagfin. Milan prosecutors began examining this move just over a year ago as part of their broader inquiry into possible tax evasion linked to cross-border corporate transfers.

The case highlights ongoing scrutiny by Italian authorities over companies shifting their fiscal base abroad and the complex tax implications such moves can trigger for multinational groups operating in Italy’s beverage sector.