Italian police seize $1.5B in assets from Campari's controlling shareholder amid tax fraud probe

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MILAN (AP) — Italian tax police said they are seizing assets worth 1.29 billion euros ($1.5 billion) from a Luxembourg-based holding company's shares in spirits maker Campari Group as part of a fraud investigation.

Luxembourg-based Lagfin is the controlling shareholder of Campari, which was founded in 1860 and is one of the largest players in the premium spirits industry.

A judge in Monza, northeast of Milan, approved the seizure order, which police described as precautionary as they look into allegations of tax evasion. The investigation began with a tax audit following a merger in which Lagfin absorbed its Italian subsidiary.

Lagfin said in a statement Friday that the investigation “is connected to a tax dispute that started approximately two years ago and that has never involved Campari Group in any manner whatsoever.”

Lagfin said it has always “acted in the most scrupulous respect of any applicable laws and regulations, including any Italian tax laws," and “will defend itself vigorously.”

Campari Group didn't immediately respond to a request for comment. Lagfin said that since it holds more than 80% of Campari’s voting rights, the seizure is “absolutely unable” to affect its position as Campari's controlling shareholder. With ties to the family of Campari Group Chairman Luca Garavoglia, Lagfin started in 1995 and its primary purpose is as Campari's controlling stakeholder, with more than 50% of its shares.

Known for its namesake red aperitif, Campari also owns Aperol and several global brands, including Grand Marnier, tequilas and some American bourbons.