ROME (AFP) – Italy’s second-largest bank Unicredit yesterday said it had bid EUR10.1 billion in an all-share deal for rival BPM.
Unicredit said the bid to combine Italy’s number two and three banks would seek to reinforce its position in the domestic market, adding the proposed deal remains subject to regulatory approval.
A Unicredit statement said the plan was to create a “stronger number two bank in an important market capable of creating significant long-term value for all shareholders and for Italy.”
Unicredit expects to be able to complete the takeover bid in June 2025 “with (BPM’s) full integration completed in the following 12 months and most synergies achieved in 24 months. “Unicredit has a strong track record in successfully integrated acquisitions,” the bank added.
“With this acquisition, we are strengthening our position in Italy and at the same time increasing even more the value we can create for all parties involved and for our shareholders in this market,” Unicredit Chief Executive Andrea Orcel was quoted as saying in the statement.
Unicredit said the takeover would benefit BPM shareholders, customers and employees with both groups, as well as the Italian and European banking system at a time of “geopolitical uncertainty.”
Unicredit estimates the mooted deal will lead to annual cost savings of about EUR900 million (USD942 million) and increased revenue of some EUR300 million.
