(Bloomberg) — UniCredit SpA has started an all-share takeover bid for domestic rival Banco BPM, a surprise move as it’s also studying an acquisition of Germany’s Commerzbank AG.
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The proposal values Banco BPM at €10.1 billion ($10.6 billion) and it implies “an offer price at €6.657 per share and a premium of circa 0.5%” on Banco BPM’s stock value on Friday, according to a release on Monday.
UniCredit has a market capitalization of about €62 billion.
UniCredit’s takeover bid for Banco BPM comes while Chief Executive Officer Andrea Orcel is also considering buying Commerzbank. The German government opposes the potential deal and Orcel has said he’s got a year to make decision what he wants to do with the holding.
UniCredit’s offer for Banco BPM is an all-shares one, it said. It’s proposing 0.175 newly issued shares for each one from Banco BPM.
Banco BPM earlier this month bought a stake in Banca Monte dei Paschi di Siena SpA. It’s also seeking to take over asset manager Anima.
The deal would incur integration charges of around €2.0 billion during year one, according to UniCredit’s release on Monday.
Banco BPM, which has almost €200 billion worth of assets, has long been seen as a potential target for UniCredit to expand in the rich Lombardy region and add lucrative segments to its business.
UniCredit “hereby gives notice of its decision taken on 24 November 2024 to launch a voluntary public exchange offer” for all of the ordinary shares of Banco BPM, it said.
(Updates with more deals details in second paragraph.)
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