Italian banking giant UniCredit has launched a £9 billion (approximately â¬10 billion) takeover bid for its domestic rival, Banco BPM. This significant move, announced on Monday, comes as a surprise to many, particularly given UniCredit's ongoing pursuit of a stake in German lender Commerzbank. The proposed acquisition, an all-share offer valuing Banco BPM shares at â¬6.657 each â a slight premium on Friday's closing price â would create one of Italy's largest banking institutions.
UniCredit asserts that the Banco BPM acquisition is a separate undertaking from its Commerzbank ambitions. The statement accompanying the bid highlighted the potential to "further strengthen its role as a leading pan-European banking group." This consolidation strategy aligns with a broader trend of mergers and acquisitions within the European banking sector, which has long been considered ripe for restructuring. UniCredit's robust financial position has frequently positioned it as a potential acquirer in such deals.
The offer follows a period of significant activity for both banks. UniCredit increased its stake in Commerzbank to approximately 21% in September, subsequently requesting permission to raise this holding to 29.9%. This move, however, has faced some resistance. Chancellor Olaf Scholz expressed reservations about âunfriendly attacksâ and hostile takeovers in late September, highlighting the political sensitivities surrounding the deal. The German government, Commerzbank's largest shareholder with a remaining 12% stake following its bailout during the 2008 financial crisis, remains a key player in determining the outcome.
Meanwhile, Banco BPM has also been actively involved in its own merger and acquisition activities. Earlier this month, it submitted a bid for asset manager Anima, potentially worth â¬1.6 billion, and acquired a 5% stake in the state-owned Monte dei Paschi di Siena (MPS). These actions suggest a proactive approach to consolidation within the Italian banking landscape, potentially influencing UniCredit's strategic decision.
UniCredit's recent financial performance has been strong, bolstering its confidence in undertaking this ambitious acquisition. The bank reported an 8% year-on-year increase in quarterly net profit to â¬2.5 billion (£2.25 billion), exceeding analysts' forecasts. Furthermore, UniCredit raised its full-year net profit guidance to over â¬9 billion, showcasing a healthy financial outlook. The bank's shares have also performed strongly this year, rising by approximately 55%.
The success of UniCredit's bid for Banco BPM remains uncertain. While the offer presents a compelling opportunity for UniCredit to expand its market share and strengthen its pan-European presence, it will depend on securing regulatory approval and the acceptance of Banco BPM's shareholders. The complexities of navigating both the Italian and German regulatory landscapes, coupled with the political sensitivities surrounding Commerzbank, will be crucial factors in determining the ultimate outcome of this significant banking proposition. The coming months will be key in determining whether this potential merger reshapes the Italian banking sector.
