UniCredit officially submitted its €10 billion ($10.5 billion) all-share buyout offer for rival Banco BPM to Italy’s market regulator on Friday, marking a significant step toward domestic banking consolidation. CEO Andrea Orcel described the offer as “fair and appropriate,” noting that it includes a price floor and regulatory approval applications.
Banco BPM shares closed at €7.846 on Friday, above UniCredit’s offer of €6.657 per share, suggesting investor expectations for a revised proposal. Orcel, a veteran in mergers and acquisitions, emphasized that any deal must provide shareholder value exceeding UniCredit’s share buyback returns.
UniCredit is offering 175 shares for every 1,000 BPM shares, representing a modest 0.5% premium to BPM’s pre-bid price. Orcel highlighted UniCredit’s resilience, diversification, and higher distribution yield as reasons for BPM investors to accept the deal.
Meanwhile, BPM’s largest shareholder, Credit Agricole, has increased its stake to 15% and applied for ECB approval to raise its holding to 19.99%, signaling potential commercial partnership discussions.