UniCredit has unexpectedly launched a €10.1 billion bid to acquire Banco BPM, marking a major step in consolidating Italy’s banking sector. The offer, which involves a share exchange of 0.175 UniCredit shares for each Banco BPM share, values the smaller lender’s stock at €6.657 per share. This represents a modest 0.5% premium on Banco BPM’s closing price from Friday.
The move, announced on Monday, is aimed at strengthening UniCredit’s competitive position in Italy and further solidifying its role as a leading pan-European bank. UniCredit’s press release highlighted the long-term value the deal could generate for stakeholders and for the Italian economy.
If successful, the merger would create Europe’s third-largest bank by market capitalization. Andrea Orcel, CEO of UniCredit, emphasized that this potential deal would not affect UniCredit’s ongoing investment in Germany’s Commerzbank, despite concerns in Germany that the increased stake in Commerzbank could result in job cuts and reduced lending to small businesses.
The offer follows a series of significant moves within the Italian banking sector. Banco BPM recently purchased a 5% stake in Monte dei Paschi di Siena, fueling speculation about future mergers, while also proposing a €1.6 billion bid for asset manager Anima Holding.
Mergers across Europe have been increasing as banks seek to scale up in response to global economic pressures. Banco BPM has not yet responded to requests for comment on UniCredit’s offer.