Merger of UniCredit and Capitalia to consolidate Italian footprint and create the No. 1 Eurozone bank by market capitalization
This merger, with an exchange ratio of 1.12 new ordinary shares of UniCredit for each ordinary share of Capitalia , Consolidates and strengthens position in the Italian market, one of the most attractive in Europe, significantly enhances main banking segments and distribution channels, unites complementary branch networks to reach more than 5,000 branches in Italy, achieves well-balanced geographic and business mix with more than 50% of revenues outside of Italy, confirming the European orientation.
Capitalia's activities will be integrated within UniCredit divisional model and three retail banks will be created in Italy with specific regional responsibilities.
The UniCredit and Capitalia Board of Directors, which met on May 20th in Milan and Rome respectively, approved the merger project by incorporation of Capitalia S.p.A. in UniCredito Italiano S.p.A.
In addition, UniCredit and Capitalia Board of Directors called the respective extraordinary shareholders' meetings which will be asked to approve the merger project and the related changes of the articles of association.
The transaction is a unique opportunity to consolidate two leading banking groups in a key core market which enjoys a positive growth outlook.
The merger will enhance the competitive position in Italy in very attractive segments (e.g. consumer credit, leasing, factoring and personal financial advisory) while increasing the scale in global businesses (e.g. asset management, investment banking).
The combination of the retail branch networks of UniCredit and Capitalia, which are very complementary, will: produce a powerful footprint with national coverage and well-balanced geographic presence (in terms of branches: #1 in the North-East and Centre Italy; #2 in North-West and South & Islands), with limited overlap; strengthen retail penetration in areas where the two groups separately are currently underweighted, but together can synergetically reap high growth potential; ally strongly recognised brands (i.e. UniCredit Banca, Banca di Roma, Banco di Sicilia).
The combined entity resulting from the merger will benefit from geographically highly diversified operations as well as from a well-balanced business mix: significant exposure to retail (37% of revenues); "add-ons"Â in global businesses (Markets & Iinvestment Banking and Private Banking & Asset Management 14% and 11% of revenues, respectively); and a
strong contribution from Corporate and CEE businesses (20% and 18% of revenues respectively).
With a pro-forma market capitalisation of €96.7 billion (2) the group will raise further its European profile (#1 by market capitalisation and #5 by total assets in the Eurozone). -http://www.unicreditgroup.eu
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