UniCredit makes surprise €10bn offer for Italian rival Banco BPM

The €10bn offer, which would merge two of Italy’s largest lenders, comes while UniCredit is building up its stake in Germany’s Commerzbank.

Italian lender UniCredit has launched a €10.1bn surprise offer for its smaller rival Banco BPM.

The larger lender announced on Monday that it would offer 0.175 of its own shares for each share in Banco BPM, valuing the stock at 6.657 euros a piece.

The all-stock offer is therefore proposing a 0.5% premium on the closing price of Banco BPM shares recorded on Friday.

According to a UniCredit press statement, the offer seeks to “strengthen the bank’s competitive position in Italy, one of the Group’s core markets … generating significant longterm value for all stakeholders and for Italy”.

Unicredit added that the potential deal would “further strengthen its role as a leading pan-European bank”.

No implication for Commerzbank investment

A successful merger would make the new entity Europe’s third-largest lender by market capitalisation.

Andrea Orcel, who has led UniCredit since 2021, said the potential takeover of Banco BPM will not have any implications for its investment in Commerzbank.

The Italian lender has been increasing its stake in the German bank, a move facing fierce opposition from Berlin.

Many in Germany fear a merger could lead to job cuts and the hindering of lending to small and medium-sized businesses.

German Chancellor Olaf Scholz notably commented in late September that “unfriendly attacks, hostile takeovers are not a good thing for banks”.

Mergers on the rise in Europe

Monday’s announcement also comes after Banco BPM this month bought a 5% stake in Italian bank Monte dei Paschi di Siena (MPS), perceived as a potential prelude to a merger.

The government is slowly exiting from MPS after a 2017 bailout, recently cutting its stake from 26% to around 11%.

Also this month, Banco BPM launched a €1.6bn offer to buy asset manager Anima Holding, seeking to diversify its revenue streams as interest rates fall.

Mergers have been gaining pace in Europe as the region seeks to compete with other economic blocs, an agenda that arguably requires larger lenders.

Banco BPM has yet to respond to Euronews’ request for comment.