...November 25, 2024 MADRID (S&P Global Ratings) Nov. 25, 2024--S&P Global Ratings views UniCredit SpA's (###/Stable/A-2) intention to launch a voluntary offer for Italian competitor Banco BPM (###/Stable/A-2) and the potential combination of the two banks as ratings neutral for UniCredit and potentially positive for the debt ratings on BPM's hybrid instruments. Strategically, the deal makes sense for UniCredit as it would strengthen its market position in Italy, and notably in the wealthier Northern part of Italy where the bank is under-represented. The combined group would hold a 15% market share of loans and 14% of deposits in Italy, reducing the gap with leader Intesa Sanpaolo SpA, and would serve 11 million clients. Additionally, BPM offers complementarity and, of course, cost synergies, given that it is an in-market transaction, which supports the economic rationale of the deal. UniCredit envisages cost synergies of 900 million--equivalent to 14% of the combined cost base of both banks'...
