UniCredit, Italy's leading bank, has made a €10 billion ($10.5 billion) all-stock acquisition proposal for its domestic competitor, Banco BPM. This move marks a new strategic front for UniCredit's CEO, Andrea Orcel, who is also exploring the acquisition of Germany's Commerzbank. According to the proposal, Banco BPM shareholders will receive 0.175 new UniCredit shares for each Banco BPM share they hold. The offer values Banco BPM at €6.657 per share, which is nearly equivalent to its closing price last week, indicating no significant premium.
Banco BPM has long been on Orcel's radar as a potential acquisition target. Successfully acquiring Banco BPM would position UniCredit as the largest bank in Italy by assets and further accelerate the ongoing consolidation within the European banking sector this year. Meanwhile, UniCredit's efforts to acquire its German competitor have stalled due to strong opposition from the German government.
Sources indicate that before the public announcement, UniCredit informed high-level government officials and Banco BPM's chairman of its intentions. Italian Finance Minister Giancarlo Giorgetti confirmed that the proposal was communicated to the government in advance but was not approved. Crédit Agricole, which holds approximately 9% of Banco BPM shares, declined to comment, and Banco BPM has not yet responded.
