No UniCredit M&A in Italy After BPM Bid Says Orcel

Milan: UniCredit CEO Andrea Orcel stated that the bank will not pursue further mergers and acquisitions (M and A) in Italy following its unsuccessful attempt to take over rival lender Banco BPM. This decision comes after the Italian government’s application of golden powers, which set conditions that hindered the merger.

According to Ansa News Agency, Orcel made these remarks at the Bank of America CEO conference, emphasizing that Italy constitutes a significant portion of UniCredit’s business, contributing to 50% of its revenue and 45% of its net profit. Orcel highlighted the need for the bank to focus on growth without relying on M and A transactions, attributing the failure of the BPM bid to government interference rather than the viability of the transaction itself.

Orcel also addressed the potential merger with Commerzbank, in which UniCredit has acquired a 26% stake. However, both Commerzbank’s board and the German government oppose a takeover. Orcel expressed respect for the German government’s stanc
e, acknowledging its critical role as an interlocutor, and expressed hope that they would eventually reconsider their position.