UniCredit Pivots to Organic Growth as Banco BPM Touts Crédit Agricole Tie-Up

Overview

• UniCredit CEO Andrea Orcel says the bank will accelerate in Italy without mergers after its withdrawn offer for Banco BPM.
• Orcel blames government interference for the failed transaction and notes Italy generates roughly half of UniCredit’s revenue and about 45% of net profit.
• UniCredit holds around 26% of Commerzbank and plans to convert derivatives to reach about 29% by year-end, while Commerzbank CEO Bettina Orlopp says a merger does not make sense at current valuations and flags client overlap risks.
• Banco BPM chief Giuseppe Castagna calls a tie-up with principal shareholder Crédit Agricole the most evident opportunity, as Crédit Agricole’s Jérôme Grivet says several scenarios could develop.
• Castagna cites Banco BPM’s market value rising from about €10 billion to €19 billion and argues UniCredit could not match the price, while also pointing to possible options involving MPS and noting Crédit Agricole has sought ECB approval to lift its stake above 20%.