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View of the branches of the Italian Bank of Monte -deo Pash in Rome.
Nurphoto | Nurphoto | Gets the image
By the end of the spring, the banking world of Italy was entered into the storm of stated statements for absorption and confrontation related to the consolidation of large creditors of the country. Three months later, there is only one loud application.
Started with PrimitThe July decision Drop the “drag” of your application nearly 15 billion euros ($ 17.5 billion) during Bank BPM As a result of the natural period of action, the proposal to the opacity of the conditions imposed by the Rome administration, through its rules for checking the “golden force”. Then, Mediobancashareholders this month voted against The proposal of the lender is approximately 7 billion euros Banca Generalitorn out what was widely considered as a defensive play against state support Monte Dei PaschiInterest (MPS) at least 35% Mediobanca.
MPS has not yet refused.
Consolidation is one appeal for Europe’s cash creditors to raise their scale and compete with historically more profitable bank giants Wall Street. Appetite M & A covered the lenders of Europe During noticeably increased performance in the sectorWith the restructuring programs, the European increase in defense, the higher investment bank returns against the background of the US volatility, and the increase in the broader transaction and the inclusion in Southern Europe, which strengthen the lower lines.
Specifically, the confusing network of offers of multiple key creditors Italy – with Pack leader Intesa Sanpaolo In particular, there is no-baptized long-term impetus that Fitch Ratings is exposed in April as a “more fragile” banking system than in some other European countries.
“Increasing scale can allow banks to better support large corporate investments, including those related to European and Italian defense initiatives,” ” Agency stated at the time.
Italy’s economy was a fertile soil for the late -time bank growth. In recent years, he “surpassed most of his peers eurozone, although the impetus can alleviate the coming years, as the investment boom caused by funds (the next generation) of funds and construction costs is fading,” Deutsche Bank analysts said in the report in AugustEmphasizing that the country will need to turn to more economy managed by the consumption, staring with the pressure of higher tariffs in the US.
The International Monetary Fund predicts Italy – where it says “further improvement of the banking sector” in the July report – will cut 0.5% economic growth this yearsuperior to predicted Germany Extension by 0.1% over the same period.
M & A Run still go
While the pace of attempts to consolidate Italy have been relied, analysts say we are far from unleashing.
“Late time we saw how Banca Bper successfully accepts Banca Sondrio, and Bank Bank, purchased Banca Ifis. Meanwhile, Monte dei Pasto is firmly on Mediobanca, and BPM BPM independence may not be long if the credit agro is 20%. Questions. “The merger between the Italian Credit Agricultural and Banco BPM is probably in the middle run.”
He added that the chances of deputies who prevail in his proposal for Mediobanca, now higher – the opinion that was repeated by William Cain, the head of the M&A Research Emea in Mergermarket, who said CNBC that “voting on the Banca Generali was an efficient referendum on autonomous strategy. The shareholders have now made their views at the moment. “
He continued to say that “the growing likeness is that the BMP will provide 35% of the Mediobanca (that) capital management previously stated that it would be satisfied – and maybe much more.”
Italy’s banks also aimed outside the country. The first play Unicredit last year was gradually counting a synthetic share of up to 28% in German lender Commerzbank. Italian bank has since transformed it into 26% of shares In Commerzbank, he provided a blessing of the European Central Bank up to 29.9% – moving speculation on the potential plans that opposed Commerzbank and Berlin administration.
The same unicredit Thursday said It raised the content in Greece Alpha -Bank Up to almost 26% after attracting financial tools for an additional 5% shares.
“What is happening is not just an Italian history – Italy has become an important thematic study of the EU to check how M&A could develop in the European banking sector,” said Stefan Kazeli, SDA Bocconi Management Dean, CNBC reports.
The consolidation fever really spread beyond Italy. In JulySpain Santander Bank said he was buying British High Street Bank for 2.65 billion pounds Sabadel. The Catalan lender himself struggles with the success of Spanish peers BBVAWhich decided to keep its application for absorption despite the strict conditions from the Madrid government to clear the deal.
In the EU there is challenged Spain On his interference with the BBVA application and also diverged from Rome to use the “golden states” rules, which are usually caused against transactions threatening national security, In unicredit absorption. The European Commission also asked questions about the sale of November Italian government of 15% of the shares of deputies in which Rome retains 11.73%. Italian Finance Minister Juncarlo Georgetti defended ‘Absolute correctness“Exit to the share separately Threatening to retire When it was canceled on the conditions that Rome was introduced on Unicredit, which included the terms for the lender to cease its activity in Russia, and the request to leave the loan ratio to the BPM deposit over five years.
“The intervention of the Italian Finance Ministry has become the last nail on the coffin for the third attempt to absorb Unicredit in Banco BPM,” Alloatty said.
In the case of the appointment of the deputies, Caselli at the SDA Bocconi School claimed that Rome “just acted as a shareholder”.
“On the one hand, we expect the state to enter when the bank gets into trouble. On the other hand, we want the taxpayers not to lose money, but ideally to see the profit. At the same time, we want the state to play a neutral role,” Kozel said. “It’s hard to achieve all this right away.”
EU Entrance
The EU, a supporter of the consolidation of the lender, launched the framework of the banking union after the financial crisis, but has not yet completed the initiative.
“The hopes that the Banking Union will lead to closer integration of banking markets across Europe have not fully come true,” Claudia Boh, chairman of the ECB Supervisory Board, – said in April. “The cross-border mergers remained relatively rare, about 75% of the bank’s credit portfolios are on their home markets, and few banks are truly European business models.”
Ties are there Mixed The number of EU banks since 2009, although approximately 4752 has been operating in the European Union as of June, 418 in Italy, According to statistics.
And the absence of blockbastal cross -border ties is grinding some gear in the block.
“I feel disappointed because I continue to see the internal mergers with the internal logic, not with the single mergers,”-the chairman of the European banking body Jose Manuel Campos said Politico earlier this week.
