Italy’s Intesa Sanpaolo has revised its deal terms with local rival BPER Banca to clear antitrust hurdles for UBI Banca acquisition.
On Monday, Intesa submitted new remedies to address the competition concerns of the regulator, reported Reuters.
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Earlier the regulator stated that the UBI deal would lead to Intesa’s dominance in many areas.
In the preliminary review, the regulatory body also said that there were too much of uncertainty issues surrounding the deal.
As per the revised terms, the firms agreed BPER Banca would acquire 532 branches from the combined Intesa-UBI group, up from the earlier deal of 400-500 branches.
In February, Intesa Sanpaolo launched a €4.9bn bid to acquire smaller rival UBI Banca. The deal is expected to close by the end of this year.
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By GlobalDataIntesa has secured approval from banking supervisors and is now working to address the competition issues before a final hearing later this week.
According to the revised deal, BPER will now add €26bn ($29bn) in net client loans, thereby reducing its impaired loan ratio to 8.4% of total lending.
Moreover, BPER expects to raise €600-700m through share issuance to finance the acquisition, the news agency reported, citing two sources with knowledge of the matter.
Last week, Intesa Sanpaolo already secured the green light from European Central Bank (ECB) to acquire UBI.
The deal, upon closure, is expected to create Eurozone’s seventh-largest bank.
