Italy Considers ‘Golden Power’ Measures in UniCredit-Banco BPM Merger
The Italian government is contemplating the use of its “golden powers” to impose conditions on significant banking mergers, particularly UniCredit’s proposed €14 billion all-share acquisition of Banco BPM. Economy Minister Giancarlo Giorgetti indicated that a decision might be reached during the upcoming cabinet meeting on Friday.
Golden Power
“We have deadlines that we need to respect,”
Giorgetti stated at a business magazine launch event in Rome, suggesting the urgency of the matter.
Sources close to the situation reveal that the government’s approval of the UniCredit-Banco BPM deal may be contingent upon UniCredit’s expedited exit from its Russian operations. UniCredit remains one of the few international banks still operating in Russia following the 2022 Ukraine conflict. CEO Andrea Orcel has previously expressed reluctance to withdraw without fair compensation for the bank’s assets.
Giorgetti emphasized the distinction between governmental responsibilities and corporate interests, noting, “The difference between a minister and a banker is that the banker is rightly concerned with individual profit, while the minister has to act in the general interest, so it’s natural that there is some conflict.”
UniCredit plans to officially launch its bid for Banco BPM on April 28, retaining the option to reconsider the offer until June 30, depending on regulatory conditions.