New episode of banking risk. UniCredit launched a 10.1 billion euro takeover bid for Banco BPM: its total offer values each BPM share at 6.66 euros and the operation, if approved, would create, according to the group, «the third European credit by market capitalization”. . However, on the stock exchange, Bpm shares rose 2.14% (at the beginning of the session they had reached 5%) while UniCredit fell 3.9%. Commerzbank shares fell 6% in Frankfurt. UniCredit’s offer represents a 0.5% premium over Friday’s price, but a 14.6% premium over the share price on November 6, the date on which BPM made an offer to buy the manager of Anima Holding assets for 1.6 billion euros. A few days later, BPM acquired a 5% stake in Monte dei Paschi di Siena.
This marks the end of a very challenging year for UniCredit, after having already shaken the sector by revealing that it had acquired a stake in Commerzbank, the second largest German credit institution. Meanwhile, illustrating the reasons for purchasing Bpm, CEO Andrea Orcel stated that with this operation the geographic scope will be expanded, as well as the retail and corporate customer base “further increasing our premium activities”. UniCredit thus consolidates its position as the second largest Italian bank. For its part, BPM has a strong retail customer base and is the largest operator in the rich regions of northern Italy, including Lombardy. “We are ready to advance quickly in our national market, we were ready and we are ready”, explained Orcel. If the transaction goes as planned, it will be completed in early June 2025. At that time, Orcel expects full integration between the institutions within the next 12 months.
As for Commerzbank, Orcel reiterated that BPM’s offer has no implications for potential investment given that “the situation is very different”. The German bank’s management has so far rejected the Italian group’s approach. For Orcel, it is now important to respect «the electoral process in Germany» (the German vote is scheduled for February) and Commerzbank is «an investment for the moment, we hope that our presence will push Commerzbank to unlock much of the value that we I know so, more quickly. We have to be patient.” In any case, a possible offer at Commerzbank would follow the completion of the integration with Banco Bpm. UniCredit, explained Orcel, “will never integrate two banks at the same time”, reiterating that participation in Commerzbank represents an investment and the Milanese group will take the necessary time before taking the next step in the German institution. In recent months, there has been talk in Europe about the need for a consolidation of banks capable of challenging large US and US institutions. rivals in rapid growth in Asia. UniCredit’s interest in BPM is no surprise: the group led by Orcel already tried to take control of BPM for the first time two years ago, but the operation was hampered by a news leak that pushed up the price. of shares. In 2021, UniCredit withdrew from a potential deal with the Italian government to take over MPS and Orcel spoke to analysts and made it clear that, for now, UniCredit “has no ambition in MPS”.
Source: IL Tempo
Roy Brown is a renowned economist and author at The Nation View. He has a deep understanding of the global economy and its intricacies. He writes about a wide range of economic topics, including monetary policy, fiscal policy, international trade, and labor markets.
