Italian Bank UniCredit Wants to Buy Banco BPM for 10 Billion

UniCredit, Italy’s largest bank, wants to buy its smaller domestic rival, Banco BPM. UniCredit says there is a takeover bid for all Banco BPM shares, valued at over 10 billion euros.

That takeover must then be completed entirely in shares. The bank has long been seen as a possible takeover target for UniCredit, which wants to increase its presence in the wealthy region of Lombardy.

Banco BPM manages assets worth almost 200 billion euros. Earlier this month, the bank bought a stake in fellow industry player Monte dei Paschi di Siena and is also said to be considering a takeover of asset manager Anima.

UniCredit CEO Andrea Orcel could also launch a takeover bid for Germany’s Commerzbank. The Italian bank has a considerable stake in Germany’s second bank.

There are significant concerns about a possible takeover in Germany due to fears of substantial job losses. Commerzbank has already said it does not want a takeover by UniCredit, and the German government is also opposed.