ROME: UniCredit, Italy’s second-largest bank, has withdrawn its offer to acquire Banco BPM, citing unresolved regulatory hurdles tied to the government’s “golden power” provisions.
The decision marks the end of a months-long standoff between the bank, its rival, and Italian authorities.
“The Board of UniCredit announces the withdrawal of its offer for BPM as the condition relating to the golden power authorization is not satisfied,“ the bank stated.
It called the failed deal a “missed opportunity” for Banco BPM shareholders.
The announcement came just before UniCredit’s quarterly earnings report and followed a 30-day suspension of the takeover bid by Italy’s financial regulator, Consob, due to “uncertainty” surrounding the offer.
UniCredit blamed Banco BPM’s leadership for obstructing the process, saying they “deprived their shareholders of the dialogue that normally occurs during an offer period.”
UniCredit had initially valued Banco BPM at 10.1 billion euros ($11.9 billion) in its November bid.
However, Banco BPM deemed the offer inadequate, while Prime Minister Giorgia Meloni’s government opposed it to preserve plans for a third major banking group involving Banco BPM and Monte dei Paschi di Siena (MPS).
In April, Italy invoked its “golden power” rule, citing national security concerns linked to UniCredit’s Russian operations.
The restrictions included maintaining Italian loan levels and exiting Russia. The European Commission later warned Italy that the measures might breach EU law.
UniCredit CEO Andrea Orcel said the regulatory uncertainty did not benefit shareholders.
Despite a June EU approval after UniCredit agreed to divest 209 branches, Italy’s Administrative Court recently overturned two of four government-imposed restrictions, complicating the deal further. - AFP
