Milan, Italy – UniCredit SpA has made a bold move with a €10 billion bid for domestic competitor Banco BPM SpA, led by Chief Executive Officer Andrea Orcel. This strategic move comes as Orcel faces challenges in his pursuit to acquire Germany’s Commerzbank AG, with opposition and delays hindering progress.
Orcel’s interest in Banco BPM has long been known, but recent market developments have potentially pushed the timing of this bid. Banco BPM recently acquired a 5% stake in Banca Monte dei Paschi di Siena SpA from the government and is also looking to take over asset manager Anima Holding SpA. These actions are seen as steps towards creating a stronger presence in the Italian banking sector.
On the other hand, Orcel’s attempts to acquire Commerzbank have faced significant resistance from German politicians, leading to a halt in the process. With uncertainties surrounding the future of the Commerzbank deal, UniCredit is now shifting its focus towards Banco BPM to elevate its position in European banking.
UniCredit’s offer values Banco BPM at €6.657 per share, barely offering any premium over the previous day’s closing price. Despite this, shares of Banco BPM rose after the bid announcement, indicating investor confidence. On the other hand, UniCredit and Commerzbank saw declines in their stock prices amidst uncertainties surrounding their respective takeover deals.
Italy, while seeking to encourage domestic consolidation in its banking sector, may not be in favor of Orcel’s aggressive pursuit. Deputy Prime Minister Matteo Salvini openly opposed the acquisition, emphasizing concerns about concentration in the market. The Italian government aims to establish a third major bank alongside UniCredit and Intesa Sanpaolo SpA, a goal that could be impeded by the Banco BPM takeover.
Orcel had previously faced challenges in Germany with his pursuit of Commerzbank, causing tensions between the Italian lender and the German government. Despite these obstacles, Orcel remains determined to navigate the complexities of the European banking landscape. His recent move to bid for Banco BPM underscores his commitment to pursuing opportunities in the Italian banking sector.
In a conference call on Monday, Orcel expressed the importance of UniCredit’s participation in the ongoing consolidation in Italy. This bid for Banco BPM is just the latest development in Orcel’s ambitious plans to reshape the European banking industry, positioning UniCredit for greater success in the competitive market.
