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Italy’s UniCredit has made a 10 billion euro offer for rival Banco BPM, in a deal it said would create one of Europe’s biggest banks by market value.
UniCredit said on Monday that its all-share offering values Banco BPM shares at 6.66 euros and the deal, if agreed, would create Europe’s third-largest lender. Europe calculated by market capitalization.
It comes as talk of consolidation among European banks has picked up steam, with policymakers in the region keen to encourage the emergence of larger and domestic conglomerates. multinational banks can challenge American giants and fast-growing rivals in Asia.
UniCredit’s offer for its Italian rival comes after it also built up its position as the largest investor in Commerzbank, the German lender. Commerzbank’s management has so far rejected this approach.
Andrea Orcel, a trader who became UniCredit’s chief executive in 2021, said in a statement that the deal with BPM would “expand our geographic reach, broadening our customer base.” our customers across both retail and corporate customers, while further growing our premium businesses.” it will strengthen UniCredit’s position as Italy’s second largest bank.
He said the offer to buy BPM “does not have any impact” on BPM’s investment in Commerzbank.
“The situation is there [at Commerzbank] very different,” Orcel said.
He said that regarding Commerzbank’s shares, UniCredit “could seek to go further if the conditions are right or withdraw from our investment and return the capital”.
That decision will take time because “I think it is important to respect the electoral process in Germany,” he said. Germany is preparing to hold an early general election in February.
UniCredit’s offer represents a 0.5% premium to Friday’s price but a 14.6% premium to the share price on November 6, the day Banco BPM made its offer to buy the management company. Anima Holding asset management for 1.6 billion euros.
UniCredit said its view is that BPM is “currently not suitably scaled to operate in a context of major change and evolution”.
