Banco emphasized its competitive positioning, asserting that it ranks among “players with the best growth prospects in the current market.”
Strategic Concerns
The proposed deal could significantly limit Banco BPM’s strategic flexibility, particularly regarding its Anima acquisition and planned investments in Banca Monte dei Paschi di Siena, the bank added. Banco also cited concerns over Italy’s passivity rules, which restrict actions that could obstruct takeover bids.
Implications for the Banking Sector
The rejection underscores the increasing prevalence of mergers and acquisitions (M&A) as European banks seek resilience amid regulatory pressures, low interest rates, and rising demand for fintech solutions.
“M&A activity in the banking sector is often seen as a way to bolster balance sheets and improve operational efficiency, but it also risks creating a more concentrated market dominated by fewer, larger institutions,” noted Ashwin Pillay, a senior associate at Charles Russell Speechlys LLP.
Banco BPM rejects Unicredit bid : Potential Banking Giant
Had the deal been accepted, UniCredit, with €803 billion in assets as of September, would have merged with Banco BPM’s €195 billion in assets to surpass Intesa Sanpaolo SpA as Italy’s largest bank. The combined entity would rank as Europe’s 14th-largest lender by assets, according to S&P Global Market Intelligence.
Next Steps
While UniCredit remains intent on expanding its operations, Banco BPM’s firm rejection suggests it will pursue growth independently. Both banks have declined to comment further on the matter.
