Italian Court Upholds UniCredit Russia Exit for Banco BPM Takeover

An Italian court has upheld the government’s demand that UniCredit must exit its Russian operations to proceed with its €45 billion takeover of Banco BPM, describing the order as "totally legitimate" and "proper." However, the court annulled other government-imposed conditions, such as maintaining Banco BPM’s loan-to-deposit ratio for five years and preserving both banks’ project finance portfolios in Italy, marking the first time the administrative court has struck down government requirements on a strategic takeover. UniCredit has sharply reduced its exposure to Russia but still operates a local subsidiary requiring Russian approval to exit, complicating compliance with the ruling. The Italian government, led by Economy Minister Giancarlo Giorgetti, pushed for the exit to ensure that Banco BPM’s savings would not benefit Moscow’s economy. The ruling leaves UniCredit’s takeover bid in limbo, with the offer period ending soon and potential appeals or requests for deadline extensions possible. The case highlights tensions between corporate consolidation efforts and government intervention under Italy’s "golden power," which has attracted scrutiny from European Union authorities due to concerns over national security and market interference.