Milan is set to buy Livio Meat Market for €7 million, the first time in the Italian capital’s history.
The sale will be completed next month, after Livio was sold to a consortium of Italian investors in October 2018.
Livio, which has been operating for almost 30 years, is located on the outskirts of Milan and has been the subject of numerous investigations and scandals.
Its shares fell more than 10% on Wednesday, but recovered within hours of the announcement.
It closed at €3.68, slightly above the €3 price target, while the market value of the entire firm fell by 10%.
The sale of Livio comes after the sale of an office tower at the heart of Milan’s city centre that is owned by the same group as Livio, and which has also been criticised for the poor conditions in which its employees live.
The Milanese government is set next month to announce its final investment decisions on the Milanese football club, which are expected to be announced in 2019.