UniCredit May Abandon Banco BPM Acquisition Amid Government Conditions

Milan: UniCredit CEO Andrea Orcel announced on Wednesday that Italy’s second-largest bank might withdraw its bid to acquire rival lender Banco BPM unless there is clear guidance on the government’s application of its ‘golden powers’ to impose conditions on the transaction.

According to Ansa News Agency, the Italian government has utilized these powers to establish conditions surrounding UniCredit’s activities in Russia, loan-to-deposit ratios, and investments in Anima Holding, a fund manager recently acquired by BPM. These stipulations are part of the government’s strategy to manage the hostile takeover bid.

Last month, UniCredit revealed its plans to appeal to the Lazio regional administrative court (TAR) against the government’s application of golden powers. The bank has also expressed its intention to support the European Commission’s review of the government’s actions regarding these powers.

Italy’s stock-market regulator, CONSOB, has temporarily suspended UniCredit’s bid for BPM for 30 days. This susp
ension allows UniCredit time to resolve the ongoing dispute. However, Orcel has expressed concerns that the appeal’s outcome “will not arrive in time to give us certainty of the closure of the operation.”

Speaking at the Goldman Sachs European Financial Conference 2025, Orcel stated, “If there is no clarity on ‘golden power’ from the government, we will pull out.” He emphasized the challenges UniCredit faces regarding its operations in Russia, noting that while the bank has ceased lending there since 2022, existing long-term commitments, like 20-year mortgages, cannot be accelerated. Orcel highlighted the need for explicit government direction, especially considering ongoing operations by companies in Germany, Italy, and France that necessitate UniCredit’s presence in Russia.