White smoke for Banco Popolare and Banca Popolare di Milano (Bpm) which, by giving rise to the merger, create the third largest Italian banking group, leader in the richest areas of the country with a market share of 8%, a capitalization market share of 5,5 billion euro, total assets of 171 billion, 4 million customers, 2.500 branches and 25 employees.
It is the first merger after the reform of cooperative banks desired by the Renzi government and it is also the first being examined by the Single European Supervisory Authority of the ECB, which yesterday gave its preliminary approval following Banco Popolare's decision to launch a capital increase of one billion euros to strengthen the capital base of the new bank.
Of the new group, which will be the first in Lombardy with a market share of over 15%, the third in Veneto (over 9% of the market) and the third in Piedmont (over 12%), the members of Banco Popolare, as a result of the capital increase to be carried out before the shareholders' meetings that will decide the merger, they will have 54% and those of Bpm 46%.
The chairman of the nascent third Italian bank will be Carlo Fratta Pasini (Banco Popolare), the CEO will be Giuseppe Castagna (Bpm) and the chairman of the executive committee will be Pier Francesco Saviotti (Banco Popolare). There will be two headquarters, one in Verona (administrative office) and one in Milan (registered office). The bank will take on a new name which will result from the combination of the current ones or will be completely new.
The merger is estimated to produce pre-tax synergies of 365 million euros by 2018. The capitalization level will be 13,6% (13,7% after the capital increase).
The extraordinary shareholders' meetings will be held by November 2016st which will be called to approve the merger which could become operational by December XNUMX. The merger will result in a strengthened banking group, strongly rooted in the richest areas of the country and able to play a as a major player on the Italian banking scene.
