EC Denies Sending Italy Letter Over Golden-Power Concerns

Brussels: The European Commission on Wednesday refuted claims of having sent a letter to the Italian government regarding its use of ‘golden powers’ in UniCredit’s attempted takeover of Banco BPM. The issue has stirred significant attention due to the potential implications for the banking sector and international mergers.

According to Ansa News Agency, the EU executive is scrutinizing how Italy applied these powers to impose conditions related to UniCredit’s operations in Russia, loan-to-deposit ratios, and investments in Anima Holding, a fund manager recently acquired by BPM. These conditions are crucial to allowing UniCredit’s hostile takeover bid to proceed. The Commission has emphasized that no decisions have been made and preliminary evaluations remain incomplete. A spokesperson confirmed, “No letter has been sent.”

The central question revolves around whether European law permits only the Commission to set conditions on such mergers. UniCredit is currently challenging the use of golden powers in court. CEO Andrea Orcel has indicated that without prompt clarification, Italy’s second-largest bank might abandon its takeover bid. The Lazio regional administrative court is expected to announce its decision by July 16.