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.
BPM had a market capitalization of €10.1 billion ($14.25 billion) at market close on Friday, compared to €62.4 billion for UniCredit.
UniCredit’s takeover bid for 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 BPM is an all-shares one, it said in a release on Monday. It’s proposing 0.175 newly issued shares for each one from 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.
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.
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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 in a release on Monday.
