Italy has approached banking giant UniCredit’s executives to find out if they are interested in acquiring the government’s majority stake in Banca Monte dei Paschi di Siena (BMPS), Bloomberg reported.
The finance ministry is looking at UniCredit as the right fit for selling the majority stake in BMPS.
Go deeper with GlobalData
The discussions are at a preliminary stage and the ministry is looking at many options, the report added citing people familiar with the matter.
UniCredit CEO Jean Pierre Mustier said that the lender will not take into consideration any deal that is not capital neutral, and free from legal risks.
The bank has already done an internal analysis of a possible merger, according to Bloomberg.
The talks follow the recent rise in mergers and acquisition deals in the European banking sector.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataLast week, Spanish lender CaixaBank agreed to buy rival Bankia, valuing the business at €3.8bn ($4.5bn).
Bankia investors will receive 0.6845 shares in CaixaBank for each share held, as per the agreed deal terms.
This represents a 20% premium over the exchange ratio as of 3 September 2020, before the banks were exploring a merger.
Banco Sabadell is also reportedly looking for strategic options in the European banking sector as merger talks begin to take place.
Italy treasury said that it plans to find a buyer by the end of this year to acquire BMPS. Italy was initially looking at Banco BPM as the right fit for acquiring BMPS.
Banco BPM said that it remains ready for further industry consolidation following UBI Banca’s hostile takeover by Intesa Sanpaolo.
The Italian government first bailed out BMPS by acquiring a 68% stake for €5.4bn ($6.34bn) back in 2017 when the bank was moving into bad debts following years of mismanagement.
According to the bailout terms agreed with the European Union competition authorities, this stake must be sold by the end of 2021.
At current market prices, the stake is worth only €1.1bn.
