Richard Parks UniCredit has made a surprise €10.1 billion all-stock bid to acquire Banco BPM, one of Italy’s largest banks. The offer, announced on Monday, proposes an exchange of 0.175 UniCredit shares for each Banco BPM share, valuing Banco BPM’s stock at €6.657 per share. This represents a slight 0.5% premium over the last closing price of Banco BPM’s shares.
UniCredit stated that the proposed merger aims to bolster its position in Italy and strengthen its status as a leading pan-European bank. The bank emphasized that the deal would deliver long-term value for its stakeholders, while contributing to Italy’s economic growth.
If the merger is successful, it would create Europe’s third-largest bank by market capitalization. UniCredit CEO Andrea Orcel clarified that the potential acquisition would not affect the bank’s ongoing investment in Germany’s Commerzbank, despite growing concerns in Germany about job cuts and limited lending to small businesses.
The bid follows recent strategic moves by Banco BPM, including the purchase of a 5% stake in Monte dei Paschi di Siena, which has sparked speculation about a future merger. Banco BPM is also seeking to diversify its business with a €1.6 billion bid for asset manager Anima Holding.
As consolidation in Europe’s banking sector continues, the UniCredit offer signals a shift towards larger financial institutions as banks compete for global relevance. Banco BPM has yet to respond to the offer.