Latest news with #EUMergerRegulation
Yahoo
5 days ago
- Business
- Yahoo
UniCredit Banco BPM merger battle deepens as Brussels warns Italy against unlawful interference
The European Commission has issued Italy with a warning after an investigation found the government decree over UniCredit's takeover of Banco BPM may breach EU laws. The Commission warned Italy on Monday that obligations placed on the merger 'may constitute a breach of Article 21 of the EU Merger Regulation (EMUR) and of other provisions of EU law', according to an official statement. Rome decided to use its so-called 'Golden Power' rule to set conditions for the deal, a power created to protect national security interests. It gives the government the right to block or set conditions on foreign and domestic corporate takeovers in strategic sectors. Banco BPM is Italy's third largest bank, formed in 2017 through the merger of Banco Populare and Banca Populare di Milano. UniCredit, the country's second largest bank, is currently trying to acquire it, although progress may be stalled further as the European Commission has now issued a warning to Italy over potential unlawful demands. The European Commission approved UniCredit's acquisition 'subject to conditions' on 19 June. However, earlier, the Italian Prime Minister's office issued a decree on 18 April, imposing obligations on UniCredit in the case of a successful takeover. What is the problem with the takeover? Related European markets open in the red after Trump threatens 30% EU tariff Wizz Air halts Abu Dhabi operations as instability threatens profits According to their website the European Commission defines Article 21 as: 'Member States may take appropriate measures to protect legitimate interests, provided these are compatible with general principles and other provisions of EU law, and are appropriate, proportionate and non-discriminatory. This is subject to Commission scrutiny, notably to safeguard its competence under the EUMR and avoid Single Market fragmentation.' Following the decree from the Prime Minister's office, the Commission requested more information from Italy on 26 May. Italy responded on 11 June. After analysis, the Commission found that the 'the conditions' justification currently lacks sufficient reasoning', and that the decree should have been reviewed by them before implementation by Italy. The Commission also added that, as well as Article 21, Italy's approach may breach other EU laws on the free movement of capital and on prudential oversight by the European Central Bank. An Italian court also partially annulled the decree on 12 July. The Commission is awaiting further response from Italy before deciding its next steps. The offer period of the deal to Banco BPM from UniCredit is set to expire on 23 July. UniCredit offered to buy Banco BPM for €10 billion in late November last year. In a statement, the smaller lender said the bid from UniCredit did "not reflect in any way the profitability and further potential to create value for Banco BPM shareholders", rejecting the offer. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Euractiv
15-07-2025
- Business
- Euractiv
Brussels clashes with Rome over UniCredit's Banco BPM takeover
Brussels clashes with Rome over UniCredit's Banco BPM takeover. ROME - The European Commission has raised serious concerns about Italy's use of its 'golden power' mechanism in UniCredit's €10 billion acquisition of Banco BPM, warning that Rome's conditions may breach EU law. According to a statement by a European Commission spokesperson, the Commission has sent a letter to Rome cautioning that the Italian government's move could violate Article 21 of the EU Merger Regulation (EUMR), which limits national interventions in corporate mergers to narrowly defined, proportionate, and justified 'legitimate interests.' The details, the spokesperson said, remain confidential. While the Commission approved the merger last month and does not contest the deal itself, it is challenging the Italian government's decision to impose special powers over the transaction. These include veto rights over corporate resolutions and the ability to block share purchases - enforced via an emergency decree. The Commission argues that Italy failed to notify the decree in advance and has not sufficiently justified the restrictions. Its preliminary assessment also suggests the move could violate EU rules on capital mobility and encroach on the supervisory role of the European Central Bank. The rebuke adds pressure on Prime Minister Giorgia Meloni's government, already facing scrutiny for blocking UniCredit's bid for Germany's Commerzbank. Italy now has the chance to respond before Brussels decides on further steps. But Deputy Prime Minister Matteo Salvini dismissed the concerns, accusing the EU of meddling in national affairs instead of focusing on 'serious matters' like US relations. Meloni's office, meanwhile, said it would respond 'collaboratively and constructively,' insisting that the government's actions are legally justified. (cs) (Alessia Peretti)
Yahoo
14-07-2025
- Business
- Yahoo
UniCredit Banco BPM merger battle deepens as Brussels warns Italy against unlawful interference
The European Commission has issued Italy with a warning after an investigation found the government decree over UniCredit's takeover of Banco BPM may breach EU laws. The Commission warned Italy on Monday that obligations placed on the merger 'may constitute a breach of Article 21 of the EU Merger Regulation (EMUR) and of other provisions of EU law', according to an official statement. Rome decided to use its so-called 'Golden Power' rule to set conditions for the deal, a power created to protect national security interests. It gives the government the right to block or set conditions on foreign and domestic corporate takeovers in strategic sectors. Banco BPM is Italy's third largest bank, formed in 2017 through the merger of Banco Populare and Banca Populare di Milano. UniCredit, the country's second largest bank, is currently trying to acquire it, although progress may be stalled further as the European Commission has now issued a warning to Italy over potential unlawful demands. The European Commission approved UniCredit's acquisition 'subject to conditions' on 19 June. However, earlier, the Italian Prime Minister's office issued a decree on 18 April, imposing obligations on UniCredit in the case of a successful takeover. Related European markets open in the red after Trump threatens 30% EU tariff Wizz Air halts Abu Dhabi operations as instability threatens profits According to their website the European Commission defines Article 21 as: 'Member States may take appropriate measures to protect legitimate interests, provided these are compatible with general principles and other provisions of EU law, and are appropriate, proportionate and non-discriminatory. This is subject to Commission scrutiny, notably to safeguard its competence under the EUMR and avoid Single Market fragmentation.' Following the decree from the Prime Minister's office, the Commission requested more information from Italy on 26 May. Italy responded on 11 June. After analysis, the Commission found that the 'the conditions' justification currently lacks sufficient reasoning', and that the decree should have been reviewed by them before implementation by Italy. The Commission also added that, as well as Article 21, Italy's approach may breach other EU laws on the free movement of capital and on prudential oversight by the European Central Bank. An Italian court also partially annulled the decree on 12 July. The Commission is awaiting further response from Italy before deciding its next steps. The offer period of the deal to Banco BPM from UniCredit is set to expire on 23 July. UniCredit offered to buy Banco BPM for €10 billion in late November last year. In a statement, the smaller lender said the bid from UniCredit did "not reflect in any way the profitability and further potential to create value for Banco BPM shareholders", rejecting the offer. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Euronews
14-07-2025
- Business
- Euronews
Banco BPM takeover battle deepens as Brussels slaps Italy with warning
The European Commission has issued Italy with a warning after an investigation found the government decree over UniCredit's takeover of Banco BPM may breach EU laws. The Commission warned Italy on Monday that obligations placed on the merger 'may constitute a breach of Article 21 of the EU Merger Regulation (EMUR) and of other provisions of EU law', according to an official statement. Rome decided to use its so-called 'Golden Power' rule to set conditions for the deal, a power created to protect national security interests. It gives the government the right to block or set conditions on foreign and domestic corporate takeovers in strategic sectors. Banco BPM is Italy's third largest bank, formed in 2017 through the merger of Banco Populare and Banca Populare di Milano. UniCredit, the country's second largest bank, is currently trying to acquire it, although progress may be stalled further as the European Commission has now issued a warning to Italy over potential unlawful demands. The European Commission approved UniCredit's acquisition 'subject to conditions' on 19 June. However, earlier, the Italian Prime Minister's office issued a decree on 18 April, imposing obligations on UniCredit in the case of a successful takeover. What is the problem with the takeover? According to their website the European Commission defines Article 21 as: 'Member States may take appropriate measures to protect legitimate interests, provided these are compatible with general principles and other provisions of EU law, and are appropriate, proportionate and non-discriminatory. This is subject to Commission scrutiny, notably to safeguard its competence under the EUMR and avoid Single Market fragmentation.' Following the decree from the Prime Minister's office, the Commission requested more information from Italy on 26 May. Italy responded on 11 June. After analysis, the Commission found that the 'the conditions' justification currently lacks sufficient reasoning', and that the decree should have been reviewed by them before implementation by Italy. The Commission also added that, as well as Article 21, Italy's approach may breach other EU laws on the free movement of capital and on prudential oversight by the European Central Bank. An Italian court also partially annulled the decree on 12 July. The Commission is awaiting further response from Italy before deciding its next steps. The offer period of the deal to Banco BPM from UniCredit is set to expire on 23 July. UniCredit offered to buy Banco BPM for €10 billion in late November last year. In a statement, the smaller lender said the bid from UniCredit did "not reflect in any way the profitability and further potential to create value for Banco BPM shareholders", rejecting the offer.
Qatar Tribune
24-06-2025
- Business
- Qatar Tribune
F1 owners allowed by European Commission to acquire MotoGP series
Berlin: Formula One owners Liberty Media have been allowed by the European Commission to buy the MotoGP world championship, currently owned by Dorna Sports SL. Liberty announced the take over of 86% of Dorna in April 2024 and on Monday the European Commission approved the deal, valued at $4.2 billion. 'The European Commission has unconditionally approved the proposed acquisition of Dorna Sports SL ('Dorna') by Liberty Media Corporation ('Liberty Media') under the EU Merger Regulation. The Commission concluded that the merger would not raise competition concerns in the European Economic Area ('EEA'),' the Commission said in a statement. Even though Liberty Media will own the commercial rights to the two top racing series competition in the allocation of broadcasting rights will not be restricted. Following an investigation, the Commission considered that F1 and MotoGP 'are not close competitors for the licensing of broadcasting rights for sports content.' (dpa)
