UniCredit announced the approval of a voluntary public exchange offer for all ordinary shares of Banco BPM, valued at €10.1 billion entirely in shares. The transaction aims to strengthen UniCredit’s competitive position in Italy, creating a stronger bank and delivering long-term value for stakeholders.
UniCredit launches offers to buy BPM
The offer includes projected annual cost synergies of approximately €900 million before taxes and revenue synergies of €300 million, achieved through operational efficiency improvements and integration of Banco BPM’s product lines. However, the deal involves integration costs of €2 billion and additional credit adjustments of around €800 million.
What offer means
The exchange ratio is set at 0.175 newly issued UniCredit shares for each Banco BPM share, representing a 15% premium compared to the early November price. Completion is expected by June 2025, with full integration within 12 months. The transaction is anticipated to increase UniCredit’s earnings per share by a high single-digit percentage within two years.
UniCredit reaffirms its strong capital position with a CET1 ratio above 13% and ensures the continuation of its dividend distribution policy. The offer remains subject to required regulatory approvals.
