From CNBC: 2024-08-08 02:18:16

Banking analysts suggest a potential merger in Italy’s banking sector in the next year due to the consolidation trend and policies encouraging larger banks across Europe. UniCredit reported impressive profits while BMPS aims to be re-privatized by 2027, part of a government agreement to reduce its stake.

The Italian government and European regulators have agreed on the divestment of the government stake in BMPS, as consolidation continues in Italy’s banking sector. UniCredit CEO remains open to potential deals if market conditions change. Analysts note that while mergers could happen, there isn’t an urgent need for them.

European policymakers and officials emphasize the need for larger, more profitable banks in Europe, with some skepticism about mega deals like BBVA’s failed bid in Spain. Analysts highlight the differences between Spain and Italy’s banking markets and the progress made in consolidation since the Global Financial Crisis.

Read more: Why Italy could see big M&A deals in banking