UniCredit is acquiring its rival Banco BPM for $11 billion.

The second largest bank in Italy, UniCredit, is acquiring 100% of Banco BPM for $11 billion, which ranks fourth among the country's most valuable banks.

According to a statement from the bank, this was reported by Reuters.

In early 2022, UniCredit proposed to absorb Banco BPM, but the implementation of the deal had to be postponed due to the Russian invasion of Ukraine.

Banco BPM primarily operates in Milan and the Lombardy region, where UniCredit has few branches.

Moreover, Banco BPM stands out as it purchased a 5% state stake in Monte dei Paschi, the world's oldest bank, which has been in operation since 1472, earlier in November.

“With the acquisition of one of our historic assets, we are strengthening our position in Italy,” stated UniCredit CEO Andrea Orcel.

The deal must be approved by the European Central Bank and antitrust authorities, and it is expected to be completed by June 2025.

UniCredit is also awaiting approval from European regulators to acquire a 21% stake in Commerzbank, where it already owns 9%. This would make UniCredit the largest shareholder of the German bank. However, the management of Commerzbank and the unions have opposed the sale of this stake to the Italian bank.

Following the announcement by Italy's second-largest bank regarding the purchase of Banco BPM, Commerzbank's shares fell by 7%, as fears grew that UniCredit might revise its investment plans in Germany. Nevertheless, UniCredit's management currently confirms that the deal with Commerzbank remains on track.

Background. Earlier, Mind reported that Russia is hindering UniCredit and Raiffeisen from exiting its market. Experts say that this is a way for Russia to prevent new sanctions.