Italy clears UniCredit’s bid for Banco BPM with prescriptions

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 CEO Andrea Orcel.

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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 late on Friday it would take time to assess the implications of the government’s decision, including on the BPM deal, “raising 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 1.8 billion euro ($1.96 billion) share buyback for 10pc, which is part of many that have taken place bidding in 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 takeovers in sectors deemed strategic, such as energy, telecommunications or even banking.

The scope of such rules in Italy for banking deals is under scrutiny by the European Commission.

Foreign Minister Antonio Tajani campaigned against imposing them because it could expose the government to legal risks, one source with knowledge of the matter said, signalling a split in the 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.