UniCredit has surprised the market with a €10.1 billion all-stock offer to acquire its smaller rival Banco BPM, marking a significant move in Italy’s banking sector. The Italian banking giant proposed an exchange of 0.175 of its own shares for each Banco BPM share, valuing Banco BPM’s stock at €6.657 per share. The offer represents a modest 0.5% premium based on Banco BPM’s closing price on Friday.
The strategic bid aims to strengthen UniCredit’s position in Italy and enhance its standing as a leading European bank. According to UniCredit’s statement, the merger would create substantial long-term value for all stakeholders and support Italy’s economic interests.
Should the deal go through, it would elevate the combined entity to Europe’s third-largest lender by market capitalization. UniCredit’s CEO, Andrea Orcel, assured that the potential takeover would not impact the bank’s investment in Commerzbank, Germany’s second-largest bank, despite political tensions surrounding UniCredit’s increasing stake in the German lender.
This announcement follows Banco BPM’s recent purchase of a 5% stake in Monte dei Paschi di Siena and a €1.6 billion bid for asset manager Anima Holding, signaling a period of consolidation within Italy’s banking sector.
As mergers continue to rise across Europe, driven by the need for larger, more competitive banks, Banco BPM has yet to comment on UniCredit’s offer.