UniCredit Proposes €10 Billion Banco BPM Acquisition

UniCredit has proposed an all-stock acquisition of rival Banco BPM valued at approximately 10.09 billion euros ($10.57 billion), aiming to consolidate Italy's second and third largest banks. The offer includes an exchange ratio of 0.175 UniCredit shares for each Banco BPM share, translating to an offer price of 6.67 euros per share, which represents a premium of about 0.4% over BPM's recent closing price. UniCredit's CEO emphasized the need for stronger banks in Europe to bolster economic competitiveness. This move follows Banco BPM's recent investment activities, including a stake in Monte dei Paschi di Siena and a buyout offer for Anima Holding. Analysts suggest that the banking sector in Italy is ripe for consolidation due to its fragmented nature, and UniCredit's bid aligns with governmental interests in reducing the number of major lenders. The potential deal could position UniCredit as Europe's third-largest bank by market capitalization if successful.