UniCredit's CEO, Andrea Orcel, emphasized the importance of this acquisition within the context of the ongoing consolidation in the Italian banking sector.

UniCredit has initiated a bid to acquire Banco BPM for 10.1 billion euros ($10.6 billion), a move that comes as its plans for Commerzbank in Germany face challenges.

The Italian government, represented by Finance Minister Giancarlo Giorgetti, may invoke its 'Golden Power' law to scrutinize the merger, reflecting concerns over strategic financial security.

If successful, the merger could significantly enhance UniCredit's market share in key regions, potentially reaching 20% in areas such as Lombardy and Veneto.

However, the board has expressed concerns about the potential social repercussions of the merger, particularly regarding employment, given the expected cost synergies.

Despite UniCredit's strong financial performance, including a €7.7 billion net profit in the first nine months of 2024, there are doubts about managing simultaneous mergers.

Orcel has acknowledged the government's scrutiny and reaffirmed his commitment to the Banco BPM deal, despite the complexities of pursuing both BPM and Commerzbank.

Political resistance is evident, with figures like Hesse's premier Boris Rhein advocating for the preservation of Commerzbank's independence against foreign acquisition.

Giuseppe Castagna, CEO of Banco BPM, has reiterated the bank's commitment to remaining an autonomous institution focused on supporting local economies and SMEs.

The merger is projected to yield annual benefits of €1.2 billion, which includes €900 million in cost savings and €300 million in revenue growth, expected within two years post-integration.

Orcel's aggressive negotiation style has drawn mixed reactions, but he remains determined to pursue opportunities in both Italy and Germany.

While the potential industrial benefits of the merger are clear, the Italian government remains cautious, reflecting a broader wariness towards domestic banking consolidation.