UniCredit has announced that the European Commission will not initiate an in-depth investigation into its proposed acquisition of Banco BPM.  

The deal, under preliminary review by the Commission, has been authorised after the end of scrutiny. 

The clearance from the European Commission comes after UniCredit disclosed in April that it was facing challenges in moving forward with a definitive decision on its public exchange offer for Banco BPM.  

The Italian government had set certain conditions under the Golden Power process, which grants the state special oversight powers in transactions deemed of national interest. 

These government-imposed conditions relate to the merged entity’s future operations, including credit activity, liquidity management, and UniCredit’s involvement in Russia.  

UniCredit has expressed concerns over the application of the Golden Power process in this context, indicating that the conditions might be at odds with Italian and EU legislation.  

The bank also highlighted potential negative impacts on its operational freedom and the risk of incurring fines. 

While the European Commission’s decision marks a step forward for UniCredit, the bank has made it clear that it cannot finalise any decisions regarding the takeover until the issues surrounding the Italian government’s constraints are addressed. 

Previously, UniCredit had obtained approvals from the European Central Bank (ECB) and the Bank of Italy to advance its acquisition plans for Banco BPM.  

The all share buyout offer is part of UniCredit’s strategy to strengthen its position in the Italian banking market.