Italy’s government and Atlantia, the country’s largest operator of motorways, are close to resolving a bitter dispute over investment but their agreement seems to have come too late to save a €25bn ($35bn) merger with Abertis of Spain.

Atlantia, the Italian company formerly called Autostrade, had wanted to merge with Abertis last year but the groups cancelled their deal after the Italian government announced a long review of the rules under which toll roads are operated. The review made it impossible to assess the future worth of Autostrade.