- The deal is reportedly part of ongoing consolidation in Italy’s banking sector, though financial risks and strategic challenges remain.
- Banco BPM’s acquisition of Anima Holding for €1.8 billion has added complexity to the situation.
UniCredit secured European Central Bank (ECB) approval for its €14 billion all-share offer to acquire Banco BPM, Reuters reported. While this regulatory nod marks a crucial step forward, the Italian banking giant may not rush to launch the tender offer just yet.
The deal comes amid a wave of consolidation in Italy’s banking sector, but challenges remain, including potential financial risks and strategic considerations.
With the ECB’s approval in hand, UniCredit’s board is set to approve a share issuance to finance the deal. Italy’s market regulator, Consob, is expected to clear the offer document in the coming week, allowing UniCredit to proceed with the formal bid. However, sources suggest the bank could delay the tender offer by about a month as it assesses its options.
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Banco BPM’s Own Acquisition Move
UniCredit’s offer for Banco BPM followed BPM’s decision to acquire fund manager Anima Holding for €1.8 billion. This deal hit a roadblock when the ECB issued a negative opinion on BPM’s ability to use favorable capital rules known as the ‘Danish Compromise.’
The Danish Compromise would have allowed BPM to pay out an extra €1 billion in dividends, making the Anima acquisition less financially burdensome. However, BPM has committed to the deal even without these benefits, potentially altering its financial position.
UniCredit retains the right to withdraw its bid if BPM’s capital outlook worsens due to the Anima acquisition. The bank has reiterated that it will closely monitor BPM’s profitability and capital levels before making a final decision.
The next key steps depend on regulatory finalization and UniCredit’s internal deliberations. While the ECB’s approval removes a major obstacle, market conditions, BPM’s financial health, and broader strategic considerations will influence UniCredit’s decision on whether to proceed with the takeover. Investors and analysts will be watching closely as the Italian banking landscape continues to shift.
