UniCredit Withdraws €10 Billion Banco BPM Offer Citing Italian Golden Power

UniCredit has withdrawn its eight-month public exchange offer to acquire Banco BPM due to unresolved issues related to Italy's government 'golden power' provisions, which impose conditions on corporate transactions to protect strategic interests and national security. Despite some progress in negotiations, the final governmental authorization was not granted within the extended offer period, leading UniCredit to consider the restrictions an insurmountable obstacle detrimental to shareholders. The Italian government, led by Prime Minister Giorgia Meloni, demanded conditions such as UniCredit ceasing operations in Russia, while the European Commission asserted that it alone holds authority over merger control regulations and had approved the deal. UniCredit's withdrawal marks the end of a prolonged standoff involving regulatory bodies, including the suspension of the offer by Italy’s stock exchange commission. Attention now shifts to UniCredit’s other strategic moves, including increasing its stake in German lender Commerzbank and potential sales of other holdings like Generali and Mediobanca. UniCredit CEO Andrea Orcel emphasized his responsibility to act in the best interests of the bank and its shareholders amid these developments.