Popular Unicredit of Italy is planning to buy one time rival Capitalia for approximately $29 billions in shares. This will result in the making of the second biggest bank of Europe. Its branches will be available all over from Sicily to Western Europe.
On Sunday, approval for takeover is given by board members of both the banks respectively. This statement was made by both of them after winning a significant group of investors backed. These groups are controlling approximately 31% of Capitalia shares.
After this booming merger, Unicredit will be positioned as one of the largest banks of Italy by the market value. This would surely end speculation regarding the contender for Capitalia (Rome based) in consolidating industry.
1.12 will be paid by Unicredit for each of the Capitalia’s share. This would value Capitalia around 8.41 euros, i.e. 21.83 billion euros (29.5 billion).
This merger along with this rocking market capitalization of approximately $135 billion would make Unicredit capable enough to widen in its home territory. Hence, challenging the home rival, Intesa Sanpaolo. Moreover, this merger would make Capitalia as the third largest bank of Italy. According to the statement made, “The transaction is a unique opportunity to consolidate two leading banking groups in a key core market.”
Matteo Arpe, CEO of Capitalia has resigned from his position, whereas Vice Chairman of Unicredit will be Cesre Geronzi. Former CEO and Chairman of Unicredit Alessandro Profumo and Dieter Rampl will retain their designation respectively.
On the other hand, four board members of Unicredit will be appointed by Capitalia. Whereas one of the largest shareholders of Capitalia, Dutch Bank ABN Amro is nowhere present in the list.
Via: usatoday
