Banco Popolare and Banca Popolare di Milano merge and create the third largest bank in Italy – Yahoo Finance Spain

MILAN, 23 (EUROPA PRESS)

Italian banks Banco Popolare and Banca Popolare di Milano (BPM) have closed their merger terms which give rise to the third largest entity in the transalpine country with more than four million customers, as reported in a joint statement.

the merger will include a plan to increase capital by Banco Popolare amounting to 1,000 million euros, as well as the split of several assets, including branches of both banks in some of the provinces of reference BPM, a subsidiary controlled by the new company.

once completed the merger process, the current shareholders of Banco Popolare shall hold 54% stake in the new entity, while Banco Popolare Milano will hold the remaining 46% of the group.

new entity will have a network of 2,500 branches and a market share in Italy of more than 8%. In addition, it will become the leading bank in the richest regions of the country, as it will be the largest entity of Lombardy, with a market share of 15%, and the third in Veneto and Piedmont, with a market share of over 9% and 12%, respectively.

in addition, the new group, which as of March 22 would have a market capitalization of 5,500 million euros, will have a workforce of over 25,000 employees and assets a total value of more than 171,000 million euros.

the two banks argue that the new entity will have an “excellent” position in profitable businesses and high growth in asset management, private banking, investment banking and corporate, banking, insurance and consumer finance.

the merger will bring a “significant” creating value for shareholders, as it will generate synergies before tax of 365 million euros in 2018, of which 290 million euros related to cost synergies and $ 75 million in revenue synergies.

the current CEO of BPM, Giusseoe Castagna, will also be the CEO of the new group, which will have a board of directors composed of 19 members, of which nine will be appointed by Banco Popolare, seven proposed by BPM, two appointed jointly by both entities and CEO.

last month January, banks Monte dei Pachi di Siena, Unicredit, Banco Popolare, Banca Popolare di Milano, Banca Popolare dell’Emilia Romagna and Banca Carige reported that the ECB had begun an evaluation of the strategy, governance, procedures and methodologies for assessment portfolio of loans at risk of default of these entities, sparking speculation about the need to take additional writedowns

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