Italian Banco Popolare and Banca Popolare di Milano agree merger – Investing.com Spain

Roma, 24 mar (EFE) .- The Italian Banco Popolare (MI and Banca Popolare di Milano (BPM) have agreed to merge by the end of the year, an agreement that will lead to the third banking group in the country after Unicredit (MI and Intesa Sanpaolo (MI :), with a capitalization of 5,500 million euros.

the boards of directors of both companies reached an agreement on Wednesday and the merger plan signed will, among other things, that the new banking group has 4 million customers, a market share above 8% and a significant presence in the Italian regions of Lombardy, Veneto and Piedmont, reported today the local media.

in the new group, 54% will be held by the shareholders of Banco Popolare while . that 46% belong to members of BPM

the organizational system will be of traditional type, ie, it will have a board of directors and board of auditors, and will have two locations: one legal in Milan and an administrative in Verona.

in addition, for the first three years, the Board of Directors shall consist of 19 directors, of which at least 9 independent, and subsequently reduced to 15 managers, at least 7 of them independent

the president of this new banking group will be Carlo Fratta Pasini, president of the board of Banco Popolare- and CEO Giuseppe Castagna will -current CEO of BPM -..

Meanwhile, the chairman of the executive committee shall Pier Francesco Saviotti -consejero delegate of Banco Popolare -.

the agreement provides for a capital increase of 1,000 million euros for Banco Popolare to be made cash in October, holding special meetings on the boards of both entities in November to finalize the details and completion of the merger in December 2016.

the resulting bank bond between Banco Popolare and Banca Popolare di Milano will generate value for shareholders of both entities and, according to preliminary estimates, synergies before tax will amount to 365 million regime 2018:. 290 million will be cost synergies, 75 million of revenue

“I am particularly happy. The agreement between Banco Popolare and Banca Popolare di Milano was born a large bank, “he told the media CEO of Banco Popolare, Saviotti.

Also the Economy Minister Pier Carlo Padoan, praised the agreement and he said the merger of the two entities fosters a “bigger, stronger and more transparent” bank.

the integration agreement of both banks was expected by the market for some time and has received the green light the European Central Bank (ECB), according to local media

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