Italian textile producer Vincenzo Zucchi SpA and Italian-based textile maker and distributor Bassetti SpA announced on Wednesday that they had agreed on the terms of their merger.

In a joint statement, the companies said the merger will involve a share swap starting next month of nine Zucchi ordinary shares for 10 Bassetti ordinary shares.

The nominal value for each firm's shares is one euro and as a result of the deal, Bassetti's shares will no longer trade independently on the Milan stock exchange.