Italian Government to Condition Banco BPM-Credit Agricole Deal
The Italian government intends to impose conditions on any potential merger between Banco BPM and the Italian unit of France's Credit Agricole, Economy Minister Giancarlo Giorgetti stated on Wednesday. Minister Giorgetti emphasized that while he holds 'no political objections,' he is bound to enforce existing legislation, specifically referring to the country's 'golden powers' framework.
'Golden Powers' to Protect Strategic Assets
The 'golden powers' are special government prerogatives designed to protect key national assets from foreign takeovers or influence. Minister Giorgetti highlighted that 'there is a law and it applies to everyone,' indicating that these powers would be invoked should the merger proceed. This approach mirrors previous instances where the government has intervened in significant financial transactions to safeguard national interests.
Anima Holding Identified as Key Concern
A primary concern for the Italian government centers on Anima Holding, a prominent Italian asset manager in which Banco BPM holds a significant stake. Anima manages over 200 billion euros in assets and is considered a strategic national asset. The government is particularly wary of the possibility that Credit Agricole could acquire a substantial stake in Anima as part of a broader merger, viewing the protection of Italian savings as a matter of national security. Previous conditions imposed by the government, such as those during a thwarted UniCredit-BPM deal, included constraints on Anima not to reduce investments in Italian titles.
Context of the Potential Merger
Banco BPM has been actively seeking a merger partner following a successful defense against a takeover attempt by rival UniCredit. Giuseppe Castagna, CEO of Banco BPM, has identified Credit Agricole Italia and state-backed Monte dei Paschi di Siena (MPS) as the leading candidates for a combination. Industry observers suggest that a deal with Credit Agricole Italia appears more feasible, especially after MPS's recent acquisition of Mediobanca. Credit Agricole is already the largest investor in Banco BPM, holding a stake that has increased to over 20%, and a merger could potentially see its ownership rise significantly. The Italian government's broader objective is to foster a third major banking player in the country to compete with Intesa Sanpaolo and UniCredit, with Prime Minister Giorgia Meloni advocating for domestic investment of Italian savings.
5 Comments
Habibi
The goal of strengthening the Italian banking sector against foreign influence is commendable. Yet, rigidly applying conditions might inadvertently prevent the formation of a truly strong third player that can compete effectively on a European scale.
Muchacho
Another obstacle to growth. Italian banks need flexibility, not handcuffs.
Fuerza
While protecting strategic assets like Anima Holding is important for national security, too much intervention could deter much-needed foreign investment and hinder market efficiency.
Ongania
On one hand, ensuring Italian control over significant asset managers like Anima is a valid concern for the economy. On the other hand, a smooth, less constrained merger could bring capital and expertise that benefits the banking sector overall.
Fuerza
It's understandable the government wants to safeguard Italian savings and foster domestic banking champions. However, excessive conditions might make Italian banks less attractive for international partnerships crucial for global competitiveness.