UniCredit, Italy’s second-largest bank, has made an unexpected €10 billion all-share bid for its domestic rival Banco BPM, marking a bold move in the Italian banking sector.
Announced on Monday, the offer comes as UniCredit also engages with Germany’s Commerzbank, fueling speculation about its broader strategic ambitions.
The offer, valuing Banco BPM shares at €6.67 each, represents a modest 0.5% premium over their Friday closing price. While the acquisition strengthens UniCredit’s presence in Lombardy—Italy’s wealthiest region—CEO Andrea Orcel, who has led the bank since 2021, stressed that the deal aligns with the bank’s long-term strategy. “With this acquisition of one of our historical targets, we reinforce our position in Italy,” Orcel said, emphasizing its importance beyond regional expansion.
The news sent waves through financial markets. Banco BPM’s shares rose by nearly 5% in Milan, while UniCredit’s stock saw a 1.5% dip. In Frankfurt, Commerzbank shares dropped 7%, indicating uncertainty over UniCredit’s intentions and its focus on both Italian and German banking landscapes.
Sources familiar with Commerzbank expressed surprise at UniCredit’s Banco BPM bid, suggesting it could complicate the possibility of a full takeover of Commerzbank. However, Orcel reiterated that UniCredit’s nearly 21% stake in the German bank remains a strategic asset, with any future acquisition contingent on regulatory approval and the political landscape in Germany.
UniCredit’s move follows other significant activity in the Italian banking market. Banco BPM recently launched a €1.6 billion bid for full control of Anima Holding, an asset manager, while UniCredit acquired a 5% stake in Monte dei Paschi di Siena (MPS), the bailed-out lender Italy aims to privatize. These developments signal a broader trend of consolidation and diversification in Italy’s banking sector.
Orcel has also prioritized increasing UniCredit’s fee income, reducing its reliance on lending revenue—a focus reflected in the Banco BPM bid. The deal, which requires approval from the European Central Bank (ECB) and antitrust authorities, is expected to be finalized by June 2025. UniCredit is also awaiting approval from the ECB to increase its stake in Commerzbank to 29.9%.
UniCredit’s dual pursuit of Banco BPM and Commerzbank illustrates the bank’s ambition to expand its influence across Europe. However, both acquisitions face challenges, including potential political resistance in Germany and the complexities of integrating these large banks. Orcel’s moves signal a strategic vision aimed at cementing UniCredit’s position as a leading player in Europe’s banking sector, though much remains to be seen in terms of regulatory hurdles and market reactions.
