Italy, UniCredit Prepare Talks Over €14bn Banco BPM Takeover Conditions

UniCredit SpA has sent congratulatory letters to the new German government, expressing willingness to engage in talks as it seeks to improve strained relations. Concurrently, Italy is standing firm on the conditions it imposed on UniCredit's €14 billion takeover bid for Banco BPM, with the government preparing to open technical discussions involving legal experts. CEO Andrea Orcel indicated that the bank is seeking clarification on the government's conditions, which include ceasing activities in Russia within nine months and maintaining certain financial ratios, before deciding whether to proceed with the bid. Italy's use of 'golden powers' to impose these conditions aims to protect national strategic interests, particularly to avoid supporting Russia's economy, but has drawn scrutiny from the European Commission. While government officials plan to engage with UniCredit as part of monitoring compliance, there are no immediate plans for high-level meetings, and a potential legal challenge could escalate tensions. The outcome of these talks will be critical in determining the future of UniCredit’s takeover attempt and its broader relations with both Italy and Germany.