BPM Takeover Bid Had Become a Burden – Unicredit CEO

Milan: UniCredit CEO Andrea Orcel stated that the bank’s attempt to acquire rival lender Banco BPM had turned into a liability. This declaration came a day after the bank retracted its offer following the government’s imposition of conditions on the merger through its golden powers.

According to Ansa News Agency, Orcel expressed in an interview with CNBC that the bank felt it was moving too quickly and the value proposition had shifted. The golden power situation left no alternative but to reconsider the merger. Orcel emphasized the importance of focusing on controllable aspects of the business, particularly in Italy and within the group.

Italy’s second-largest bank, UniCredit, announced its withdrawal of the 10.1-billion-euro bid for BPM on Tuesday, attributing the decision to the golden power. This announcement followed the Italian stock-market regulator CONSOB’s 30-day suspension of the bid, citing uncertainty that prevented shareholders from assessing the offer.

The ruling by the Lazio regional adminis
trative court (TAR) partially supported UniCredit’s challenge against the government’s use of golden powers. Additionally, a letter from the European Commission to the government expressed doubts regarding the application of these powers. The government had placed conditions on the merger, including UniCredit’s activities in Russia, loan-to-deposit ratios, and investments in Anima Holding, recently acquired by BPM.

Furthermore, UniCredit announced an increase in its net income outlook for 2025, raising it from 9.3 billion euros to 10.5 billion euros after reporting a net profit of 3.3 billion euros in the second quarter, an increase from 2.68 billion euros in the same period last year.