Italy pressures UniCredit to exit Russia amid BPM takeover bid, Reuters says

The Italian government has approved a proposal by UniCredit, an Italian multinational banking group, to acquire rival Banco BPM, setting an immediate withdrawal from the Russian market as one of the conditions.

Source: Reuters, citing sources

Details: UniCredit highlighted that it requires time to evaluate the consequences of the government's decision, particularly regarding the BPM deal, and will coordinate with the appropriate authorities as needed.

"The offer is approved with prescriptions, the merit of which is not clear. UniCredit will be taking time to assess the viability and impact of the prescriptions," the banking group said.

UniCredit is set to reveal its €14 billion bid for BPM on 28 April.

The government of Italian Prime Minister Giorgia Meloni has reviewed the BPM deal under extraordinary powers, enabling it to block or impose conditions on foreign and domestic acquisitions in sectors like energy, telecoms and banking.

The European Commission is currently scrutinising the extent of Italy's regulations concerning banking transactions.

The Italian government defended these measures, stating that they are in place to safeguard strategic national security interests.

However, a division within the government is evident, as Italy's Foreign Minister Antonio Tajani opposed the prescriptions, warning that they could expose the government to legal risks.

UniCredit remains one of the few international banks that failed to exit Russia since the outbreak of the war in Ukraine in 2022.

Background: Raiffeisen Bank International (RBI), the largest Western bank still operating in Russia, has halted attempts to sell its business in the country amid warming relations between Washington and Moscow.

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