Unicredit and the Ministry of Economy and Finance of the Italian Republic, “in its capacity as majority shareholder of Banca Monte dei Paschi di Siena, have approved the conditions for a potential transaction involving the commercial activities of Mps, by defining a selected perimeter and adequate risk mitigation measures. To this end, they will initiate exclusive discussions to verify the feasibility of the operation “. It can be read in a note from Unicredit.
The details of the agreement
A potential operation «that would allow the Group to accelerate its organic growth plans and facilitate the achievement of sustainable returns above the cost of capital. Mps could contribute, subject to the definition of the perimeter of the transaction, about 3.9 million customers, € 80 billion of customer loans, € 87 billion of customer deposits, € 62 billion of assets under management and € 42 billion of assets in administration »explains the note again. The transaction “would allow the group to strengthen its competitive positioning in Italy and in particular in the Center-North, where 77% of Mps branches are located, contributing, among other things, to an increase in the market share in Tuscany of 17 points percentages, in Lombardy and Emilia Romagna by 4 percentage points and in Veneto by 8 percentage points “, underlines Unicredit, clarifying that” this operation would also lead to a significant increase in prospective profitability, while preserving the capital position and improving the quality of assets and the risk profile of the group on a pro forma basis. Any potential operation would take place in the context of the group’s existing focus on the release of internal value which remains and will remain a priority ».
Among the main assumptions agreed between Unicredit and the Mef to verify the feasibility of the transaction with Mps at the equity and economic level, “the neutrality of the same with respect to the capital position of the group on a pro forma basis” is fundamental. It is one of the conditions indicated by Unicredit. Furthermore, among the other conditions there is a significant increase in earnings per share after considering the possible net synergies of the transaction and in any case the maintenance of current levels of earnings per share even before taking into account the possible synergies in 2023 and the ” exclusion of extraordinary disputes not relating to ordinary banking activities and all related legal risks, current or potential. Furthermore, the exclusion of impaired loans and the adequate coverage of any further credit risks that are identified also following the due diligence through methods to be defined and the agreement on personnel management according to the compendium inherent in the exercise of commercial activities , in order to ensure smooth, rapid and effective integration of the business into the group