Italy's Court Upholds Part of UniCredit's Appeal Against Banco BPM Bid

UniCredit's appeal against Italy's decision on Banco BPM bid has been upheld in part by a court. Banco BPM is Italy's third-largest banking group, offering private banking, investment banking, insurance, strategic partnerships, finance, and a corporate center. The group has EUR 103.4 billion in current deposits and EUR 125.9 billion in current loans, with a network of 1,434 branches in Italy.

MILAN — A court in Italy has partially upheld UniCredit's appeal against the Italian government's conditions on its bid for Banco BPM. The court's decision comes as UniCredit seeks to acquire the third-largest banking group in Italy, known for its robust private banking and investment banking services.

Banco BPM, with EUR 103.4 billion in current deposits and EUR 125.9 billion in current loans, operates a vast network of 1,434 branches across Italy. The acquisition, valued at EUR 101 billion, would position the combined entity as Europe's third-largest lender by market capitalization [3].

UniCredit's CEO, Andrea Orcel, has been pursuing a series of strategic acquisitions, including doubling its stake in Greece's Alpha Bank and building a stake in Italian insurer Generali. However, the bank's expansion plans have faced political resistance, particularly in Germany, where UniCredit's bid for Commerzbank has been met with strong opposition [1][2].

The Italian government has used its special powers to block or set conditions for deals affecting strategic assets on national security grounds. UniCredit has argued that the conditions set by Rome for the Banco BPM deal would be detrimental to the sound management of the combined bank. The court's decision to partially uphold UniCredit's appeal is a significant step in the bank's efforts to secure the acquisition [1][2].

UniCredit shares closed up 4.6% on the news, while Banco BPM's shares rose 2.3% and Commerzbank's fell 0.2% [1]. The court's decision is expected to influence the political and regulatory landscape in Italy, potentially affecting future consolidation efforts in the banking sector.

References:
[1] https://finance.yahoo.com/news/italys-unicredit-awaits-ruling-banco-063420967.html
[2] https://www.investing.com/news/stock-market-news/italys-unicredit-awaits-ruling-on-banco-bpm-deal-after-lifting-commerzbank-voting-stake-4127540
[3] https://thepaypers.com/fintech/news/unicredit-unveils-eur-101-bln-bid-for-banco-bpm-in-strategic-shift