BPER Banca and Banca Popolare di Sondrio: The Latest Episode in The Italian Consolidation Saga

The commentary analyses BPER Banca (BPER)'s voluntary public exchange offer over Banca Popolare di Sondrio (BPS)'s shares.

Summary highlights from the commentary include:

-- On 6 February, BPER made a voluntary public exchange offer to buy 100% of BPS.

-- Revenue and cost synergies are envisaged in the deal.

-- The deal is expected to be completed by the end of 2025, subject to the required regulatory approvals.

"With this acquisition, BPER would strengthen its market position in Italy, particularly in the wealthiest regions in the north of the country, especially Lombardy; at the same time, BPS would benefit from joining BPER's well established and diversified franchise which is supported by a solid credit profile," said Andrea Costanzo, Vice President, European Financial Institution Ratings. "While we continue to monitor any development surrounding the potential transaction, we would expect BPER's good track record in the execution of integration processes as well as the presence of the same significant shareholder, Unipol, in both banks to facilitate a successful deal execution".