Agencies
Italy’s second-largest bank, UniCredit, said Monday it had bid 10.1 billion euros ($10.5 billion) in an all-share deal for smaller domestic rival Banco BPM, one that comes as it also pursues a contentious deal for Germany’s Commerzbank.
UniCredit said the bid to combine Italy’s number two and three banks would seek to reinforce its position in the domestic market, adding the proposed deal remains subject to regulatory approval.
A UniCredit statement said the plan was to create a “stronger number two bank in an important market capable of creating significant long-term value for all shareholders and Italy.” UniCredit expects to be able to complete the takeover bid in June 2025 “with (BPM’s) full integration completed in the following 12 months and most synergies achieved in 24 months.””UniCredit has a strong track record in successfully integrated acquisitions,” the bank added.“With this acquisition ... we are strengthening our position in Italy and at the same time increasing, even more, the value we can create for all parties involved and for our shareholders in this market,” UniCredit Chief Executive Andrea Orcel was quoted as saying in the statement.
UniCredit says the takeover would benefit BPM shareholders, customers and employees within both groups, as well as the Italian and European banking systems, at a time of “geopolitical uncertainty.” UniCredit estimates the mooted deal will lead to annual cost savings of about 900 million euros.Commerzbank shares fell as much as 7% at the start of trading in Frankfurt, while in Milan, UniCredit shares fell about 1.5%, and BPM shares rose nearly 5%.Italy’s second-largest bank had previously readied a buyout offer for Banco BPM in 2022, just before the Ukraine conflict broke out.
UniCredit offered 0.175 of its common stock for each BPM share, valuing them at 6.67 euros each. That represents a premium of about 0.5% to Friday’s closing price or 15% to the day before the announcement of the Anima bid.
The offer for Banco BPM is independent of its proposed investment in Commerzbank, UniCredit said, noting discussions around a possible acquisition would need to wait for Germany to form a new
government.
