A person walks past the UniCredit bank branch in Rome, Italy, November 25, 2024. REUTERS/Yara Nardi/File Photo
ROME: Italy has cleared with conditions UniCredit’s takeover bid for rival Banco BPM, with sources saying a speedier exit from Russia is among demands set by Rome for the bank led by chief executive officer Andrea Orcel.
UniCredit’s presence in Russia is a bone of contention also with the European Central Bank, which last year ordered the Italian lender to hasten its disentanglement.
UniCredit said last Friday it would take time to assess the implications of the government’s decision, including on the BPM deal, “liaising as appropriate with the competent authorities”.
“The offer is approved with prescriptions, the merit of which is not clear. UniCredit will be taking time to assess the viability and impact of the prescriptions,” it said.
UniCredit plans to launch on April 28 its €14bil (US$16bil) all-share bid for BPM, which is one of many hostile takeover bids rocking Italian banking.
The government of conservative Prime Minister Giorgia Meloni vetted the BPM deal using special “golden powers” that allow it to block or set conditions on foreign and domestic takeovers in sectors such as energy, telecommunications and banking.
The scope of such rules in Italy for banking deals is under scrutiny by the European Commission.
The government said in a statement it was protecting strategic interests for national security in setting the prescriptions.
Foreign Minister Antonio Tajani campaigned against imposing them because it could expose the government to legal risks, one source said, signalling a split in the Italian government.
Other demands are likely to focus on bank branches to ensure services to customers and indirectly preserve jobs should the takeover be finalised, a second source said.
UniCredit is among only a handful of international banks that failed to leave Russia after the Ukraine war broke out in 2022, with Orcel saying he refused to damage shareholders by foregoing a fair price for the assets.
The bank has accelerated the reduction of its Russian exposure to meet ECB demands. — Reuters
