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UniCredit challenges Banco BPM deal terms

Monday 26 May 2025 16:13 CET | News

UniCredit has initiated legal proceedings against the Italian government's conditions tied to its proposed acquisition of Banco BPM.

 

The bank filed an appeal with the Regional Administrative Court in Rome, contesting the stipulations set under Italy's ‘golden power’ regulations, which grant the government authority to impose restrictions on transactions involving strategic national assets. 

According to Reuters, the government's approval of the EUR 14.4 billion all-share offer came with several conditions. These include UniCredit's complete withdrawal from the Russian market by January 2026 and the maintenance of Banco BPM's existing loan-to-deposit ratio for five years post-acquisition. Additionally, UniCredit is required to uphold Banco BPM's current credit activities, particularly concerning small and medium-sized enterprises, and to manage Anima Holding's assets without significant changes. Failure to comply with these conditions could result in penalties ranging from EUR 300 million to EUR 20 billion, depending on the severity of the breach. 

UniCredit officials have expressed concerns that these requirements may limit the bank's operational flexibility and could potentially lead to unintended consequences, such as sanctions for non-compliance. They argue that the imposed conditions are unclear and may not align with the information previously provided to authorities.

 

UniCredit has initiated legal proceedings against the Italian government's conditions tied to its proposed acquisition of Banco BPM.

 

Suspension and industry implications

In response to the ongoing dispute, Italy's market regulator, Consob, has granted a 30-day suspension of the tender offer period, which was initially set from April 28 to June 23. This pause is intended to allow for further negotiations between UniCredit and regulatory bodies. 

Banco BPM has also indicated plans to appeal against the suspension, stating that it hinders the bank's ability to participate effectively in the current wave of mergers and acquisitions within Italy's banking sector.


Source: Link


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Keywords: regulation, acquisition, banks, financial institutions
Categories: Banking & Fintech
Companies: Banco BPM, UniCredit
Countries: Italy
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Banking & Fintech

Banco BPM

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UniCredit

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