Investing.com -- UniCredit SpA (BIT:CRDI) announced a €10.1 billion voluntary public exchange offer for Banco BPM (BIT:BAMI), the company said in a statement on Monday.
The proposal, approved by UniCredit's Board of Directors, involves offering 0.175 newly issued UniCredit shares for each Banco BPM share.
This exchange ratio implies a price of €6.657 per Banco BPM share, with a modest premium of around 15% compared to its undisturbed share price as of early November 2024.
This potential deal is expected to position UniCredit as a stronger competitor in Italy, one of its core markets, consolidating its status as the second-largest bank in the country.
UniCredit plans to complete the exchange offer by June 2025 and aims to achieve full integration within a year afterward.
The deal is expected to generate €1.2 billion in annual benefits, including €900 million in cost savings and €300 million in revenue growth. These benefits are projected to be realized within two years of integration.
“Europe needs stronger, bigger banks to help it develop its economy and help it compete against the other major economic blocs,” said UniCredit’s CEO, Andrea Orcel.
The group aims to maintain a strong capital position with a CET1 ratio of at least 13%, while also prioritizing shareholder returns in the years ahead.
Additionally, UniCredit also addressed its ongoing discussions regarding its investment in Commerzbank (ETR:CBKG), saying that the talks have been prolonged due to consideration for upcoming elections and the interests of Commerzbank stakeholders.
Despite the delays, UniCredit said that the investment remains a key part of its strategy, providing both substantial upside potential and downside protection.