UniCredit SpA has launched a €10 billion ($10.6 billion) all-share bid for Italian rival Banco BPM, aiming to become Italy’s largest lender by total assets. This marks CEO Andrea Orcel’s second major acquisition effort alongside ongoing plans to acquire Germany’s Commerzbank AG.
Banco BPM has been a long-speculated target for UniCredit, with the proposed merger set to boost the recent surge in European banking consolidation. The offer values Banco BPM at €6.657 per share, offering a slight premium. On Monday, Banco BPM’s shares rose 2%, while UniCredit’s dropped 4%.
Despite the move, Orcel assured investors that the bid does not derail his interest in Commerzbank, though it reduces the urgency to finalize a German deal. “We need to be patient,” he said, referencing resistance from Berlin’s government.
The acquisition comes as Italy seeks to consolidate its banking sector. However, Prime Minister Giorgia Meloni’s government, which hopes to establish a third major Italian bank alongside UniCredit and Intesa Sanpaolo, may oppose the move.
UniCredit had reportedly notified officials and Banco BPM of its plans before the announcement. Banco BPM, which controls nearly €200 billion in assets, is seen as a strategic fit for expanding UniCredit’s presence in Lombardy and enhancing its portfolio.
If successful, UniCredit expects €2 billion in integration costs in the first year, though dividends for 2024 will remain unaffected.