Italy's Government Positioned Against UniCredit's Banco BPM Takeover

By Angelo Amante and Giuseppe Fonte
ROME (Reuters) – Italy's government is prepared to invoke special vetting powers if UniCredit's takeover proposal for Banco BPM threatens the national interest, stated Prime Minister Giorgia Meloni on Monday.

UniCredit's bid could disrupt the government's strategy to create a third major banking entity alongside Intesa Sanpaolo and UniCredit through a merger of Banco BPM with the state-owned Monte dei Paschi di Siena (MPS). Both banks are associated with Italy's largest fund manager, Anima Holding.

Given the substantial public debt, Italy views it as crucial for domestic companies managing significant private savings to remain under national control. "We must ensure savings are managed by decision-making centers based in Italy, otherwise investments may not serve domestic needs," Meloni highlighted during a TV interview on Quarta Repubblica.

While describing UniCredit's offer for Banco BPM as a market transaction, she affirmed that the government possesses tools to intervene if the deal appears detrimental to national interests.

UniCredit's CEO, Andrea Orcel, proposed a surprising €10 billion ($10.5 billion) bid for Banco BPM last month, while also trying to establish a connection with Commerzbank, potentially centering UniCredit's operations in Germany. This move also complicates Banco BPM's pursuit of acquiring Anima, limiting its capacity to increase its bid. Recently, Banco BPM acquired a 5% stake in MPS, with Anima holding 3% as the government moved forward with re-privatization plans.

Italy's extensive "golden powers" laws enable the government to block or impose conditions on both foreign and domestic acquisitions, as well as changes in governance at companies in sectors deemed strategic, including banking.

Orcel indicated to investors that UniCredit remains uninterested in MPS, having declined to acquire it from the state in 2021, which strained the relationship with Rome.

The government will thoroughly evaluate the situation once UniCredit finalizes the bid terms.

($1 = 0.9532 euros)