Italy’s second-largest bank, UniCredit, has launched a €10 billion all-share bid for smaller domestic rival Banco BPM.
This unexpected move, announced Monday, comes as UniCredit also courts Germany’s Commerzbank, sparking speculation about its strategic priorities.
The offer values Banco BPM shares at €6.67 each, a 0.5% premium to their closing price on Friday. While the bid strengthens UniCredit’s footprint in Lombardy—Italy’s wealthiest region—CEO Andrea Orcel emphasised its broader strategic importance. “With this acquisition of one of our historical targets, we reinforce our position in Italy,” said Orcel, a seasoned dealmaker leading UniCredit since 2021.
The announcement sent ripples through financial markets. Banco BPM shares jumped nearly 5% in Milan trading, while UniCredit’s fell 1.5%. In Frankfurt, Commerzbank shares dropped 7%, reflecting uncertainty over UniCredit’s intentions.
Sources close to Commerzbank expressed surprise at the Banco BPM bid, with one insider suggesting it complicates the outlook for a German acquisition. However, Orcel reaffirmed that UniCredit’s near-21% stake in Commerzbank remains a strategic investment for now, with further action contingent on regulatory approval and Germany’s political stability.
UniCredit’s bid follows significant activity in the Italian banking sector. Earlier this month, Banco BPM launched a €1.6 billion offer to gain full control of Anima Holding, an asset manager.
Meanwhile, UniCredit recently acquired a 5% stake in Monte dei Paschi di Siena (MPS), potentially setting the stage for further consolidation as Italy seeks to privatise the bailed-out lender.
UniCredit acknowledged Banco BPM’s interest in Anima and highlighted its own focus on boosting fee income to reduce reliance on lending revenue. Orcel’s leadership has prioritised diversifying UniCredit’s profit streams, aligning with its broader growth strategy.
The proposed Banco BPM deal requires approval from the European Central Bank (ECB) and antitrust authorities. UniCredit aims to finalise the acquisition by June 2025. Meanwhile, the bank awaits ECB approval to increase its stake in Commerzbank to 29.9%.
UniCredit’s dual pursuit of Banco BPM and Commerzbank underscores its ambitions to expand its influence in Europe. However, the moves come with challenges, including potential political resistance in Germany and the complexities of integrating new acquisitions. Orcel’s calculated steps signal a bold vision for UniCredit’s future, even as markets and stakeholders await further clarity.