Unicredit announced the launch of a voluntary public offering for all of the shares of Bpm bench. In an official note, the banking institution communicates that the overall value of the operation, in the event of full participation, amounts to 10.086 billion euros. This amount corresponds to a price of 6.657 euros for each share of Banco Bpm, calculated also considering the official value of Unicredit shares, which in last Friday’s session was equal to 38.041 euros.
The stages of the acquisition
After the interest shown in Commerzbank, the focus shifts to Italy, with a 10 billion euro offer from Unicredit to acquire Banco Bpm.
The operation, if completed, could propel Unicredit to the top of European banks in terms of capitalization and value of assets. The decision was taken into consideration longer times needed for Commerzbank, especially after Andrea Orcel declared that he did not want to undertake any further operations in Germany before the German elections at the beginning of the year. Consequently, Unicredit opted for the offer on Banco Bpm as a strategic move.
Unicredit expects the offer on Banco Bpm to be completed by June 2025, with full integration expected in the following 12 months and the majority of synergies realized within 24 months. The Piazza Cordusio institute underlines that it boasts “solid experience in successfully integrated acquisitions”, highlighting the skills and management capabilities necessary to carry out the operation efficiently.
The Ops, the public subscription offer, provides that the consideration for the purchase of the securities subject to an offer is paid through other shares. In this case, Banco Bpm shareholders are paid in newly issued Unicredit securities. It is a particular type of takeover bid, but the difference lies in the payment: in the takeover bid the consideration for the purchase of the securities is in cash, while in the takeover bid the payment takes place through the transfer of other shares.
The Ops did well on the stock market for Bpm, but a little less for Unicredit: the former is currently rising at +5.4%, while the second is a -2.6%.
Why Unicredit wants to buy Banco Bpm
The integration between Unicredit and Banco Bpm is defined in the voluntary public offering document as an opportunity to “ideal growth” for both realities. Banco Bpm shareholders, by accepting the offer, could benefit from the union with a pan-European group such as Unicredit, which, thanks to the operation, would become the third European bank by market capitalisation. Furthermore, the aggregation would allow us to accelerate the strategic plan Unlocked 2022-2024strengthening the creation of value thanks to the acquisition of a company perfectly in line with the strategic objectives outlined.
“Europe needs stronger and bigger banks to help it develop its economy and compete against other major economic blocs. Thanks to the work carried out over the last three years, Unicredit is now well positioned to respond to this challenge too”, are the first words of Unicredit’s CEO, Andrea Orcel, reported in the note announcing the Ops on Banco Bpm.
An 80 billion colossus
If the operation on Banco Bpm is successful, a group will be created with an overall capitalization of 73 billion euroscalculated from the sum of the market values of Unicredit (62.3 billion) and Banco Bpm (10.7 billion). If we also added to this the value of Monte dei Paschi, of which Unicredit already holds 5%, a share destined to rise up to 9.90%, the overall capitalization would exceed 80 billion. Furthermore, if we also considered the value of Anima Holding, for which Banco Bpm is carrying out another takeover bid, the total would rise to 82 billion.
In this regard, Andrea Orcel specified that the takeover bid launched on Anima will continue, even if Banco Bpm will not be able to increase the price offered, due to the “passivity rule” which limits the action of a company subjected to the offer. Orcel stressed that it is essential that the operation continues, as it represents a central element in the creation of value for the group.
