(News Bulletin 247) – Italy’s second-largest bank has launched a public share exchange offer on its competitor Banco BPM, valuing the latter at more than 10 billion euros.

The second Italian bank UniCredit launched on Monday a public exchange offer (OPE) in shares on Banco BPM, the third banking group, valuing the latter at 10.1 billion euros, at a time when its plan for a possible takeover of Commerzbank is marking time.

This offer concerns all the ordinary shares of Banco BPM, whose largest shareholder is Crédit Agricole with a share of 9.18%, and aims to strengthen “UniCredit’s positioning in one of its main markets”, Italy. , announced its CEO Andrea Orcel.

The offer on Banco BPM comes as UniCredit announced in September first the acquisition of 9% of Commerzbank, then its increase to 21% of the capital, fueling speculation on a possible complete takeover of its German rival.

“We will only proceed” with an offer for Commerzbank “if certain conditions are met, which requires a change in the position of certain stakeholders” in Germany, Andrea Orcel declared during a conference with analysts.

“What we expect from Commerzbank has not changed”, but given the resistance encountered in Germany “we must be patient and give everyone time”, he argued.

A public share exchange offer

For now, the stake in Commerzbank “is just a financial investment,” he added. While waiting for early elections in Germany, “we do not have the capacity to move in the short term and perhaps there will be no capacity to move at all.”

The OPE on BPM would create “an even stronger second bank in an important market, able to create significant long-term value for all shareholders and for Italy,” UniCredit explained.

The Italian bank offered 0.175 of its ordinary share for each Banco BPM share, valuing them at 6.657 euros each, a premium of around 0.5% compared to Friday’s closing price and 15% compared to the price of 6 november.

The announcement of the OPE caused the title of Banco BPM to take off on the Milan Stock Exchange, where it rose 3.9% to 6.91 euros after opening up 7%. Conversely, UniCredit is down 4.3% to 36.45 euros.

“With this acquisition (…) we strengthen our position in Italy and at the same time we further increase the value that we can create for all parties involved and our shareholders in this market,” said Andrea Orcel.

“Europe needs stronger, bigger banks that help it develop its own economy and be competitive with other major economic blocs. Thanks to the work carried out over the last three years, UniCredit is now well positioned to face this challenge “, he assured.

According to UniCredit, this OPE is favorable to the shareholders of Banco BPM, its customers, the employees of the two groups, the Italian economy and banking system as well as the European banking system “in an uncertain geopolitical context”.

“More strength”

“Being able to position ourselves in Italy gives us more options and more strength and makes us less tied to the need to complete” or not a takeover of Commerzbank, commented Mr. Orcel.

According to UniCredit calculations, group synergies will enable cost savings of around 900 million euros per year and an increase in revenues of around 300 million euros per year thanks to the strengthening of the product offering and services.

Banco BPM, formed in 2017 from the merger between Banco Popolare and Banca Popolare di Milan, is the third Italian banking group in terms of assets (194.5 billion euros), behind Intesa Sanpaolo and UniCredit.

Rumors about an offer from UniCredit for Banco BPM began to circulate in February 2022. But UniCredit did not follow up then, in an uncertain stock market context disrupted by the war in Ukraine.

UniCredit’s offer could thwart plans to create a third banking hub in Italy. Banco BPM has just bought 5% of the capital of its rival Monte dei Paschi di Siena (MPS) and launched a public purchase offer (OPA) of 1.6 billion euros for the Italian asset management group Anima .

“We have no ambition regarding MPS,” assured Andrea Orcel, whose attempt to buy this bank, saved by the Italian state in 2017, came to an end in October 2021.

(With AFP)