EU Approval with Conditions
Unicredit has received approval from the European Commission for the acquisition of its Italian competitor Banco BPM. However, this approval comes with certain conditions, as the European Commission sees potential competition restrictions particularly in the area of deposits and loans for small and medium-sized business customers. These restrictions could lead to higher prices.
Commitment to Sell Branches
To counteract this, Unicredit has committed to sell 209 branches in regions where the presence of both banks overlaps in the event of an acquisition. At the regional level, there are no competitive concerns.
Decision-Making Authority Remains with the EU
The European Commission has also rejected a request from the Italian antitrust authority to review the transaction under Italian antitrust law, thereby keeping jurisdiction with the European Commission. Unicredit plans to acquire Banco BPM for approximately 10 billion euros, although this offer had previously been rejected by Banco BPM.
Relevance for German-speaking Investors
This development is significant for investors in the German-speaking region, as it can affect competition in the European banking sector and have implications for market structures as well as potential price developments in banking services.
In summary:
- European Commission approves Unicredit’s acquisition of Banco BPM with conditions
- Commitment to sell 209 branches to avoid local competitive restrictions
- Focus on protecting small and medium-sized business customers from potential price increases
- Rejection of a shift to national antitrust review by Italy
- Transaction value approximately 10 billion euros
This decision underscores the EU’s efforts to maintain balanced competition in the banking sector despite larger mergers.