Published by Global Banking & Finance Review®
Posted on July 29, 2025
2 min readLast updated: January 22, 2026
Add as preferred source on GoogleItaly insists on UniCredit BPM bid terms post-collapse, citing national security, amid EU scrutiny over golden powers usage.
By Giuseppe Fonte
ROME (Reuters) -Italy will tell the European Union the terms it imposed on UniCredit's bid for Banco BPM remain in place even after the collapse of the deal, sources said, responding to criticism from Brussels that could ultimately lead to disciplinary steps.
UniCredit withdrew its offer for BPM on July 22, blaming government intervention for scuppering the 15 billion-euro ($17.3 billion) transaction.
Days earlier, the European Commission warned Italy that it could have breached EU rules by using its so-called golden powers aimed at shielding key assets to rein in UniCredit's takeover plans, giving Rome 20 working days to reply to its objections.
Italy will send a letter of reply to Brussels as early as this week which will invoke national security considerations for the use of the golden powers, two sources familiar with the matter told Reuters.
The European Commission was not immediately available for comment.
In the letter Italy will also say it has no plans to withdraw the decree that set the conditions for the collapsed deal, arguing that their legitimacy was largely upheld by an Italian court ruling this month, the sources added.
Among several conditions, Italy told UniCredit it had to halt activities in Russia, except for payments to Western companies, by early 2026, to prevent savings collected by Banco BPM from benefiting Moscow's economy as it continues its war against Ukraine.
The court ruling due to be referenced in the letter to Brussels axed some of the terms imposed by the government, but upheld the Russia-related conditions.
Italy also asked UniCredit to keep investments in Italian securities of BPM-owned fund manager Anima Holding, a provision that UniCredit said the court had made non-mandatory.
While the EU said corporate mergers should be vetted at the EU level to prevent member states taking unjustified measures in their regard, Economy Minister Giancarlo Giorgetti argued national security was not for European institutions to judge.
Should the government fail to persuade the European Commission that its use of the golden power rules was justified, Brussels could adopt a decision ordering it to revoke the conditions.
Italy's use of its 'golden power' legislation is also under EU scrutiny in a separate process called EU Pilot.
($1 = 0.8672 euros)
(Reporting by Giuseppe FonteEditing by Keith Weir)
Italy will inform the EU that the terms imposed on UniCredit's bid for Banco BPM remain in place despite the deal's collapse.
UniCredit withdrew its offer on July 22, citing government intervention as the reason for scuttling the 15 billion-euro transaction.
Italy required UniCredit to halt activities in Russia by early 2026 and to maintain investments in BPM-owned fund manager Anima Holding.
If the European Commission finds Italy's use of golden power unjustified, it could order the government to revoke the imposed conditions.
Italy argues that the legitimacy of the conditions was largely upheld by an Italian court ruling, which upheld the Russia-related conditions.
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