The takeover bid by BPER Banca adds to a series of recent merger and acquisition activities in the Italian banking landscape. Credit: Eyesonmilan/Shutterstock.

BPER Banca has launched a €4.3bn ($4.4bn) all-share bid to acquire Banca Popolare di Sondrio, intensifying Italy’s banking consolidation.

Italy’s BPER Banca has launched an all-share bid valued at approximately €4.3bn to acquire smaller competitor Banca Popolare di Sondrio.

This bid is seen as part of the ongoing consolidation wave in the crowded Italian banking market, reported Wall Street Journal.

BPER Banca announced late on Thursday its offer of €9.527 per share for Banca Popolare di Sondrio, a 6.6% premium over Wednesday’s closing price.

The takeover bid by BPER Banca adds to a series of recent merger and acquisition activities in the Italian banking landscape.

In January, Banca Monte dei Paschi di Siena made an unexpected $14bn bid for Mediobanca, which was declined.

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UniCredit also put forward a bid for Banco BPM, which was also turned down, with Banco BPM itself looking to acquire asset manager Anima Holding.

Commenting on the potential acquisition, BPER Banca chief executive Gianni Franco Papa stated, “A deal with Banca Popolare di Sondrio would create a more solid banking group with significant scale in terms of clients, geographic footprint and synergies.”

BPER Banca has a client base of over five million served by more than 1,500 branches and nearly 20,000 employees as of the end of last year.

The acquisition would add approximately 900,000 customers, close to 400 branches, and around 4,000 employees to its operations.

Banca Popolare di Sondrio’s board of directors is scheduled to meet on Tuesday to consider BPER Banca’s proposal, which was described as unsolicited and not earlier agreed upon.

The merger would result in a lender with a net profit exceeding €2bn by 2027 and a return on tangible equity nearing 15%.

The bank aims to finalise the deal in the second half of the year and fully integrate Banca Popolare di Sondrio by the end of 2025, pending regulatory approval.