{"id":8520,"date":"2024-11-25T09:57:57","date_gmt":"2024-11-25T09:57:57","guid":{"rendered":"https:\/\/finderica.com\/unicredit-offers-to-buy-rival-italian-lender-banco-bpm-for-10-5-billion\/"},"modified":"2024-11-25T09:57:57","modified_gmt":"2024-11-25T09:57:57","slug":"unicredit-offers-to-buy-rival-italian-lender-banco-bpm-for-10-5-billion","status":"publish","type":"post","link":"https:\/\/finderica.com\/?p=8520","title":{"rendered":"UniCredit offers to buy rival Italian lender Banco BPM for $10.5 billion"},"content":{"rendered":"<div id=\"RegularArticle-ArticleBody-5\" data-module=\"ArticleBody\" data-test=\"articleBody-2\" data-analytics=\"RegularArticle-articleBody-5-2\"><span class=\"HighlightShare-hidden\" style=\"top:0;left:0\"><\/span><\/p>\n<div class=\"InlineImage-imageEmbed\" id=\"ArticleBody-InlineImage-107007868\" data-test=\"InlineImage\">\n<div class=\"InlineImage-wrapper\">\n<div>\n<p>A logo on the UniCredit SpA headquarters in Milan, Italy, on Saturday Jan. 22, 2022.<\/p>\n<p>Bloomberg | Getty Images<\/p>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"group\">\n<p>Italian lender UniCredit on Monday offered to snap up its domestic rival <span class=\"QuoteInBody-quoteNameContainer\" data-test=\"QuoteInBody\" id=\"RegularArticle-QuoteInBody-2\">Banco BPM<span class=\"QuoteInBody-inlineButton\"><span class=\"AddToWatchlistButton-watchlistContainer\" id=\"-WatchlistDropdown\" data-analytics-id=\"-WatchlistDropdown\"><button class=\"AddToWatchlistButton-watchlistButton\" aria-label=\"Add To Watchlist\" data-testid=\"dropdown-btn\"><span class=\"AddToWatchlistButton-addWatchListFromTag\"><\/span><\/button><\/span><\/span><\/span> for roughly 10 billion euros ($10.5 billion) in a move it says is separate from its pursuit of German bank <span class=\"QuoteInBody-quoteNameContainer\" data-test=\"QuoteInBody\" id=\"RegularArticle-QuoteInBody-3\">Commerzbank<span class=\"QuoteInBody-inlineButton\"><span class=\"AddToWatchlistButton-watchlistContainer\" id=\"-WatchlistDropdown\" data-analytics-id=\"-WatchlistDropdown\"><button class=\"AddToWatchlistButton-watchlistButton\" aria-label=\"Add To Watchlist\" data-testid=\"dropdown-btn\"><span class=\"AddToWatchlistButton-addWatchListFromTag\"><\/span><\/button><\/span><\/span><\/span>.<\/p>\n<p>The deal would, if completed, merge two of Italy&#8217;s largest lenders. UniCredit said in a statement early Monday that it is offering 6.657 euros for each share \u2014 a slight premium on Friday&#8217;s close price of 6.644 euros.<\/p>\n<p>UniCredit said the purchase, which would be an all-stock deal, would allow the bank to &#8220;further strengthen its role as a leading pan-European banking group.&#8221;<\/p>\n<p>Shares of UniCredit were down 1.7% on Monday in early deals, while <span class=\"QuoteInBody-quoteNameContainer\" data-test=\"QuoteInBody\" id=\"RegularArticle-QuoteInBody-4\">Banco BPM<span class=\"QuoteInBody-inlineButton\"><span class=\"AddToWatchlistButton-watchlistContainer\" id=\"-WatchlistDropdown\" data-analytics-id=\"-WatchlistDropdown\"><button class=\"AddToWatchlistButton-watchlistButton\" aria-label=\"Add To Watchlist\" data-testid=\"dropdown-btn\"><span class=\"AddToWatchlistButton-addWatchListFromTag\"><\/span><\/button><\/span><\/span><\/span> soared 5%.<\/p>\n<p>The news follows a flurry of merger and acquisition announcements in the European banking sector this year. The industry has been considered ripe for consolidation for years, with cash-rich UniCredit often cited as a possible acquirer.<\/p>\n<\/div>\n<div role=\"region\" aria-labelledby=\"Placeholder-ArticleBody-Video-108067416\">\n<div role=\"button\" tabindex=\"0\" id=\"Placeholder-ArticleBody-Video-108067416\" class=\"PlaceHolder-wrapper\" data-vilynx-id=\"7000358992\" data-test=\"VideoPlaceHolder\">\n<div class=\"InlineVideo-videoEmbed\" id=\"InlineVideo-0\" data-test=\"InlineVideo\">\n<div class=\"InlineVideo-wrapper\">\n<div class=\"InlineVideo-inlineThumbnailContainer\"><span class=\"InlineVideo-videoButton\"><\/span><span><\/span><\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"group\">\n<p>In September, UniCredit increased its stake in German lender Commerzbank to around 21% and submitted a request to boost the holding to up to 29.9%. Earlier that month, the Italian bank had taken a 9% stake in Commerzbank, with half of this shareholding acquired from the German government.<\/p>\n<p>The German government has yet to bless the potential union, with Chancellor Olaf Scholz stating that &#8220;unfriendly attacks, hostile takeovers are not a good thing for banks,&#8221; in late-September comments carried by Reuters.<\/p>\n<p>The largest shareholder of Commerzbank, the Berlin administration, retains a 12% stake after rescuing the lender during the 2008 financial crisis and divesting 4.5% of its initial position in early September. Commerzbank shares slipped 6% on Monday.<\/p>\n<p>&#8220;It&#8217;s definitely a surprise,&#8221; Kian Abouhossein, head of European bank equity research and global IB coverage at JP Morgan, told CNBC&#8217;s &#8220;Squawk Box Europe.&#8221;<\/p>\n<p>&#8220;It&#8217;s unlikely that he [UniCredit CEO Andrea Orcel] can do both transactions at the same time. So that sends a message that maybe Commerzbank is a bit more difficult than originally expected.&#8221;<\/p>\n<\/div>\n<div role=\"region\" aria-labelledby=\"Placeholder-ArticleBody-Video-108058621\">\n<div role=\"button\" tabindex=\"0\" id=\"Placeholder-ArticleBody-Video-108058621\" class=\"PlaceHolder-wrapper\" data-vilynx-id=\"7000357026\" data-test=\"VideoPlaceHolder\">\n<div class=\"InlineVideo-videoEmbed\" id=\"InlineVideo-0\" data-test=\"InlineVideo\">\n<div class=\"InlineVideo-wrapper\">\n<div class=\"InlineVideo-inlineThumbnailContainer\"><img decoding=\"async\" class=\"InlineVideo-videoThumbnail\" src=\"https:\/\/image.cnbcfm.com\/api\/v1\/image\/108058622-17308764721730876462-36997353924-1080pnbcnews.jpg?v=1730876469&amp;w=750&amp;h=422&amp;vtcrop=y\" alt=\"Watch CNBC's full interview with UniCredit CEO Andrea Orcel\"><span class=\"InlineVideo-videoButton\"><\/span><span><\/span><\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"group\">\n<p>Earlier this month, meanwhile, <a href=\"https:\/\/finance.yahoo.com\/news\/italys-banco-bpm-launches-1-185533606.html?guccounter=1&amp;amp;guce_referrer=aHR0cHM6Ly93d3cuZ29vZ2xlLmNvbS8&amp;amp;guce_referrer_sig=AQAAAGvsOjVPSoYZ277mqp6KEngdVMtQYwxoGAkIHiriUiJIIThJpo1AOBp4jUvCSobvigkH1_J5iX5DjNMzzo3lCvNR31CC8gh0MJhTPCKwx6FEiuEldLW-B9rC6IPXZ0Ko3PJJieFpj2pwa3mVPNQXEn6LAB6E8WBm8DOPsuaGth_7\" target=\"_blank\" rel=\"noopener\">Banco BPM itself made a bid for asset manager Anima<\/a> in a possible 1.6-billion-euro deal, and just days later bought a <a href=\"https:\/\/www.reuters.com\/markets\/deals\/italy-takes-step-towards-possible-bank-ma-with-monte-paschi-stake-sale-2024-11-14\/\" target=\"_blank\" rel=\"noopener\">5% chunk of state-owned Monte dei Paschi di Siena (MPS)<\/a>.<\/p>\n<p>UniCredit on Nov. 6 posted an 8% year-on-year hike in quarterly net profit to 2.5 billion euros ($2.25 billion), compared with a Reuters-reported 2.27-billion-euro forecast. It also raised its full-year net profit guidance to above 9 billion euros, from a previous outlook of 8.5 billion euros. Shares are up some 55% so far this year.<\/p>\n<p>Abouhossein said that even if the Commerzbank and Banco BPM deals were staggered by, for example, nine months, this would still be an unrealistic timeframe for the transactions.<\/p>\n<p>&#8220;You have to also remember, from a regulatory perspective, there&#8217;s a lot of execution risk and the regulator will look at the size of the bank, operational risk, and management&#8217;s ability to integrate two banks at the same time,&#8221; he said. &#8220;So I think he&#8217;s [Orcel] hedging himself a bit on these transactions.&#8221;<\/p>\n<p><em>\u2014CNBC&#8217;s April Roach and Ruxandra Iordache contributed to this article.<\/em><\/p>\n<p><em>Correction: This story has been updated to reflect the correct spelling of Banco BPM.<\/em><\/p>\n<\/div>\n<\/div>\n<p><a href=\"https:\/\/www.cnbc.com\/2024\/11\/25\/unicredit-offers-to-buy-rival-italian-lender-banco-bpm-for-10point5-billion.html\" target=\"_blank\" rel=\"noopener\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>A logo on the UniCredit SpA headquarters in Milan, Italy, on Saturday Jan. 22, 2022. Bloomberg | Getty Images Italian lender UniCredit on Monday offered to snap up its domestic rival Banco BPM for roughly 10 billion euros ($10.5 billion) in a move it says is separate from its pursuit of German bank Commerzbank. The<\/p>\n","protected":false},"author":1,"featured_media":8521,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rank_math_lock_modified_date":false,"footnotes":""},"categories":[196],"tags":[2984,237,2985,23,2982,2983,199,1965,2163],"class_list":{"0":"post-8520","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-finance-news","8":"tag-banco","9":"tag-billion","10":"tag-bpm","11":"tag-buy","12":"tag-italian","13":"tag-lender","14":"tag-offers","15":"tag-rival","16":"tag-unicredit"},"_links":{"self":[{"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/posts\/8520","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=8520"}],"version-history":[{"count":0,"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/posts\/8520\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/media\/8521"}],"wp:attachment":[{"href":"https:\/\/finderica.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=8520"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=8520"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=8520"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}