Italian bank Intesa Sanpaolo has launched a bid to take over its rival, UBI Banca for 4.9 billion Euros.
Italian Economy Minister Roberto Gualtieri said Wednesday Intesa Sanpaolo’s planned takeover of UBI Banca would spell an “important consolidation” of the Italian banking sector.
Intesa, based in Turin, unveiled an all-share offer to buy Italy’s fourth-biggest lender through notices detailing its plans to issue new shares to fund the deal. If successful, the combination would create the seventh-largest bank in the eurozone with €1.1tn in assets. It would also give Intesa an additional 3m retail, small business and private-banking clients, the company said.
Intesa will have to receive permission from the European Central Bank for the deal to go ahead, and negotiate with Rome and the unions over 5,000 job cuts it plans for the deal. The acquirer forecasts that the deal could lead to €730m in annual synergies, but will cost €1.3bn before tax to execute.
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