The European Commission (EC) notified Italy on Thursday that the strict conditions imposed by the country’s authorities on UniCredit SpA’s deal to buy rival Banco BPM may violate EU law.
UniCredit made an offer to buy Banco BPM in November 2024, valuing the bank at €10.1 billion. In June, the EC authorised UniCredit to acquire Banco BPM, approving the potential deal with a number of conditions, including the sale of some of the banks’ branches.
Meanwhile, Italy has imposed a number of requirements on UniCredit to complete the deal based on domestic legislation that gives the country’s authorities the power to intervene in investments in companies operating in strategic sectors, including banking.
Later, UniCredit said it was having difficulty making a final decision on its offer to buy Banco BPM due to the conditions imposed by the Italian authorities. These conditions primarily relate to how the merged financial institution will conduct its lending and liquidity management, UniCredit said at the time. In addition, the restrictions concern the bank’s Russian operations and the management of the assets of Anima, which is being acquired by Banco BPM.
According to preliminary estimates by the European Commission, the Italian authorities’ decision is contrary to EU merger rules and is not sufficiently justified. Furthermore, it is incompatible with other EU legislation, including rules on the free movement of capital, the regulator said.
On July 12, an Italian court overturned some of the conditions imposed on UniCredit by the country’s authorities. The EC will consider its next steps after receiving a response from the Italian authorities, the statement said.
