AGCM

The Italian Competition Authority authorised with conditions the acquisition of control of Ubi Banca S.p.A. by Intesa Sanpaolo S.p.A. (hereinafter also ‘ISP’)

The Authority noted that the merger transaction, consisting of a voluntary all-inclusive Public Exchange Offer made by ISP concerning the share capital of UBI Banca S.p.A., is likely to result in the establishment and/or strengthening of ISP’s dominant position in some local markets in bank funding, loans to consumer households and loans to household producers-small businesses.

Similarly, the Authority decided that the transaction could be classed as the establishment and/or strengthening of ISP’s dominant position in the administered assets, mutual investment funds and individual asset management (GPM) markets and in the funds market (GPF), as well as the markets for loans to medium and large companies and for the distribution of life insurance products, thus affecting competition in a substantial and lasting way.

Therefore, in authorising the transaction the Authority imposed some structural measures on ISP to solve the concerns that emerged during its investigation regarding possible anti-competition effects as a result of it. In particular, ISP will have to dispose of over 500 bank branches, a much higher number than originally offered. The disposals must be made in the geographical areas where the greatest competition issues are recorded and will be directed at one or more independent operators able to regulate the new “post merger entity”.

Rome, 16 July 2020