Italy Treasury Reaffirms Golden Power Terms on UniCredit-Banco BPM Amid Hostile Bids and Tensions with Consob

The Bank of Italy has emphasized that the primary objective of mergers and acquisitions in the Italian banking sector should be to enhance the availability and quality of credit and savings products for customers. This statement comes amid a surge in hostile takeover bids faced by domestic lenders. Concurrently, Italy's Treasury has reaffirmed the legitimacy and feasibility of the conditions imposed on UniCredit's bid for Banco BPM under the government's golden power authority. The Treasury communicated this stance through a letter to UniCredit, underscoring the government's commitment to maintaining regulatory oversight in the deal. The golden power intervention has reignited tensions between the executive branch and independent authorities such as Consob, highlighting ongoing challenges in balancing governmental control and regulatory independence. Meanwhile, officials including Minister Giorgetti have maintained a firm position on the issue, encouraging UniCredit to respond while Bank of Italy continues to rely on market mechanisms to address the situation.