According to the Financial Times, the combined entity will have a market capitalization of approximately E100 billion, making it the second largest European bank after HSBC.
The deal will significantly boost the group’s position in the Italian market and enhance its main banking segments and distribution channels. Furthermore, its united branches will reach to more than 5,000 branches in Italy alone. The merger also offers a well-balanced geographic and business mix with more than 50% of revenues outside of Italy, confirming the European orientation.
The new group will adopt a business model similar to UniCredit’s current divisional structure, with a focus on customer segmentation. Capitalia’s activities will be integrated within existing UniCredit divisions.
The transaction is subject to the appropriate regulatory approvals, while the merger will be presented at the extraordinary shareholders’ meeting between the end of July 2007 and the beginning of August 2007. If successful, the deal is anticipated to close during the start of the last quarter in 2007.
