Banco BPM Overcomes Regulatory Hurdle in $1.7 Billion Bid

Banco BPM, Italy’s third-largest bank, has received the green light from the country’s antitrust authority to pursue full ownership of Anima Holding, the nation’s largest independent asset management company, according to Reuters. The development marks a significant step in Banco BPM’s 1.6-billion-euro ($1.7 billion) bid to consolidate its position within the competitive savings management sector.

The bank announced its intentions last month to acquire the remaining shares of Anima through its insurance division. Banco BPM already holds a 22% stake in the asset manager. The move aligns with broader industry trends toward consolidation, as firms strive to bolster their market positions in an evolving financial landscape.

However, the acquisition process has faced complications. Shortly after Banco BPM’s announcement, UniCredit, another major Italian bank, made an unsolicited all-share offer valued at 10 billion euros for Banco BPM itself. This bid triggered Italy’s “passivity rule,” which restricts the management of takeover targets from making decisions that could hinder a potential acquisition without shareholder approval. As a result, Banco BPM would require shareholder consent to revise its offer for Anima, including any potential increase in the bid price.

Anima Holding’s shares have surged approximately 15% since Banco BPM’s offer, rising to 6.6 euros per share, surpassing the 6.2 euros per share initially proposed. This increase underscores market confidence in Anima’s value and adds another layer of complexity to Banco BPM’s acquisition strategy.

The approval from Italy’s antitrust agency represents a key milestone for Banco BPM, but the road ahead remains uncertain, particularly as UniCredit’s interest in the bank introduces additional variables into the equation.

Source: Reuters