How Italy’s banking M&A wave started crashing

At the end of spring, Italy’s banking world was swept in the storm of counter -bodies, including curved taking offs and a swallowing of the country’s main loans. Three months later, only one high -profile offer is still standing.

Started with Tekredit‘July, approximately 15 billion-EURO (17.5 billion dollars) proposal “dragging” decision to reduce the decision BANCO BPM At the summit of the natural termination of the proposal, indicating the opaquacy of the conditions introduced by the Roman administration through the “Golden Power” scanning rules. Later, MediobancaThis month shareholders Voting against 7 billion-Euro proposal Banca Generalto prevent those seen as state -supported defense games Monte dei Paschi‘S (MPS) is interested in at least 35% of Mediobanca.

MPs have not yet given up.

Consolidation is an application for Europe’s cash glare lenders to collect the scale and compete with Wall Street’s historically more profitable banking giants. The merger and purchasing appetite kept a significant improved performance in the sector, restructuring programs, European defense increase, an increase in the profit lines of higher investment banking returns than US Tariff -led volatility, and wider merger and procurement in Southern Europe.

In particular, a few of the key loans of Italy’s key to the wandering proposal network – package leader Intesa Sanpaolo A long brewing acceleration, especially in which Fitch ratings are invoiced as a “more fragmented” banking system compared to some other European countries, is being built, especially in disappearing.

“Increased scale can provide banks better support for large corporate investments, including those who are affiliated to European and Italian defense sector initiatives.” The agency then said.

The Italian economy has been an efficient ground for late banking growth. In recent years, most of the Euro zone peers have performed better, but acceleration can relax as an investment boom in the coming years. [Next Generation EU] Funds and construction expenditures disappear, “Deutsche Bank Analysts He said in the August reportEmphasizing the country should return to a more consumption -oriented economy facing the prints of higher US tariffs.

In the July report, the International Monetary Fund estimates Italy, which he pronounced as “more improvement in the banking sector” 0.5% economic growth this yearGermany’s foreseen 0.1% expansion in the same period.

Although Italy’s consolidation attempts have boiled, analysts say we are far from an audit.

“We found that Banca Banca, which was purchased by Banca IFIS, has managed to be misleading. In the meantime, Monte Dei Paschi walks decisively to Mediobanca, and the independence of Banco BPM, with the opening of a 20% of the credit Agrocole, Kredi Credit AGRICOLLE,” he said. “Credit Agricole the merger between Italy and Banco BPM probably appears in the medium term.”

He added that the deputies who reigned in the Mediobanca proposal are now higher – an opinion echoed by EMEA President William Cain at the CNBC, CNBC, said that Voting to Banca Georist was a referendum for Mediobanca’s independent strategy and shareholders.

“There is a chance that BMP’s share of Mediobanca’s share of 35% [that] Capital management said that this would be happy before and maybe much more. “

Italy’s banks put landscapes beyond the borders of the country. Unicredit’s first game last year was to get a synthetic share up to 28% of the German lent. Commerzbank. The Italian Bank has been this since then 26 % equity shareholder In Commerzbank and the European Central Bank maintained the blessing up to 29.9% – speculation on speculation on a potential inheritance plans that resisted by Commerzbank and Berlin administration.

The same unicredit He said Thursday Increased Holding in Greece Alfa Bank The financial tools are included in an additional 5% shares, up to 26%.

“What happened is not only an Italian story – Italy has become an important case study to test how the merger and purchases of the EU can develop in the European banking sector.” He said.

The consolidation fire really spread beyond Italy. Spain in July BANCO SANDER British Hight Street Bank said that he bought TSB for £ 2.65 billion Sabadell. The Catalon lent is fighting the progress of the Spanish peer BBVA, who decided to keep the transfer proposal alive despite the strict conditions to clean the transaction from the Madrid government.

There is an EU Challenging spain The BBVA intervened in the proposal, and in the same way, he contradicted Rome to the use of the rules of “Golden Forces”, which are often called against national security -threatening transactions. In the acquisition of Unicredit. The European Commission also asked questions about the sale of 15% shares in the bail of the Italian government in November that Rome maintains a shareholder of 11.73%. Italian Finance Minister Giancarlo GiorGetti “absolute accuracy“Pile output separately threaten to resign It was invalid of the conditions imposed by Rome imposed on Unicredit, which includes a timeline for the lender to stop its activities in Russia and the Banco BPM’s credit / deposit rate for five years.

“The intervention of the Italian Ministry of Finance was the last nail of the coffin for the attempt of the 3rd inVoving attempt in Banco BPM.”

In the proposal of MPs, Caselli Caselli of the SDA Bocconi Administrative School argued that Rome was “only a shareholder”.

Caselli, “On the one hand, we expect the state to come into play when a bank head is in trouble. On the other hand, we want taxpayers not to lose money, ideally want to see the earnings. At the same time we want the state to play a neutral role.” He said. “It’s hard to get all this at once.”

“The Banking Union will lead to closer integration of banking markets throughout Europe,” Claudia Bukch, Chairman of the ECB Supervisory Board. He said it in April. “Cross -border mergers remained relatively rare, about 75% of the bank’s credit portfolios are being invested in their own markets, and a small number of banks really have European business models.”

There are links decreasing Although the number of EU banks has been operating in the European Union since June 2009, 418 in Italy. According to Statista.

And the lack of cross -border bonds that break box office records grinds some gears in the block.

“I feel disappointed because I continue to see the local unions with local logic, not one market unions,” Jose Manuel Campa, President of the European Banking Administration. At the beginning of this week.