Italian banking firm BPER Banca will present a new business plan after completing the acquisition of ailing bank Carige, Reuters reported citing the bank’s CEO Piero Luigi Montani.
The news comes a day after BPER announced the agreement to buy a majority stake in Carige from the Interbank Deposit Protection Fund (FITD).
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Montani said that details about the synergies from the deal will be made public upon the closure of the deal, which is expected to happen by the end of June this year.
Last month, mid-sized lender BPER and Italy’s depositor protection fund entered into exclusive discussions over Carige’s takeover.
Notably, the FITD owns nearly 80% stake in Carige, which it had acquired as part of a €600m rescue in 2019.
As per the deal, BPER will pay €1 for FITD’s entire stake in the lender and the FITD has agreed to inject €530m into Carige as clean-up and restructuring costs.
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By GlobalDataUpon the completion of the deal, BPER will launch a mandatory public purchase offer to acquire the remaining stake in Carige for €0.8 per share.
Carige along with bigger peer Monte Dei Paschi di Siena was one of the hurdles in Italy’s restructuring strategy, which began in 2015.
BPER expects the deal to have no impact on its capital position due to the government’s tax incentive.
The deal takes BPER assets to about €155bn and places it among the top four banking giants in the country.
