On June 19, 2025, the European Commission conditionally approved UniCredit's acquisition of Banco BPM, marking a significant shift in Italy's banking landscape.

As the second-largest banking group in Italy, UniCredit's acquisition of the third-largest, Banco BPM, is a notable development in the financial sector.

The approval followed an investigation that identified potential competition issues due to significant overlaps in the companies' operations across 181 local areas.

Concerns were raised regarding the merger's impact on local markets for deposits and loans, which could affect retail consumers and small and medium-sized enterprises.

The Commission's decision was influenced by worries that the merger could grant UniCredit excessive market power at a local level.

To address these competition concerns, UniCredit has agreed to divest 209 branches located in overlapping areas, which will help maintain market competition.

The European Commission stated that these divestiture measures effectively eliminate the overlap in activities between UniCredit and Banco BPM, ensuring competition remains intact.

An independent trustee will oversee the implementation of the divestiture conditions to ensure compliance.

The Commission opted not to refer the case to the Italian competition authority, citing its expertise in banking market analysis and the need to maintain competition within the European banking market.

The Commission emphasized the importance of maintaining competition in sectors like banking and insurance for the economic development of the EU's capital market and investment union.

This merger is expected to reshape the competitive dynamics among banks operating in Italy, influencing their strategies and operations moving forward.

The transaction does not raise regional level concerns for large corporate clients, as other competitors remain active in that segment.