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Item 1 of 2 UniCredit bank logo is pictured in Rome, Italy, November 25, 2024. REUTERS/Yara Nardi/File Photo
So-called golden powers allow Italy’s government to block or set conditions on foreign and domestic corporate takeovers in strategic sectors such as energy, telecoms and banking.
Prime Minister Giorgia Meloni’s administration has consistently said the re-privatisation of MPS, which the state rescued in 2017, should help it to strengthen the banking system while preserving competition.
Speaking on condition of anonymity due to the sensitivity of the matter, the sources said Rome could use golden power rules only to set some “mild conditions” on the deal, while an outright veto would be hard to defend in court.
Prescriptions on how Italian savings are invested could also become legally contentious unless politicians decide to take that risk, one of the sources said.
The Treasury was not immediately available for comment. UniCredit declined to comment.
GOVERNMENT SPLIT
The golden power rules, designed at the EU level to fend off unwanted non-EU buyers, were expanded during the COVID-19 pandemic to shield companies when valuations crashed, with some countries such as Italy including the banking sector.
Italy has used golden powers mainly to block takeover deals involving non-EU players such as Chinese and Russian firms, as EU treaties promote the free movement of capital within and among member countries.
The move angered ministers from the League party led by Deputy Prime Minister Matteo Salvini.
But Foreign Minister Antonio Tajani, leader of the co-ruling Forza Italia party, said on Wednesday he did not believe there could be grounds to apply golden power rules.
Unions have been more cautious, only saying jobs must be protected.
Rome is keen to preserve jobs, but seeking a clear commitment from UniCredit on BPM jobs would exceed the scope of EU rules governing golden powers, one of the sources said.
The government, however, could ask for guarantees on bank branches to ensure services to customers, the person added.
UniCredit CEO Andrea Orcel, whose cost cutting at UniCredit has spared the network which he sees as a strong point, has said BPM’s branch network would not suffer, with cost savings deriving mostly from procurement contracts.
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Reporting by Giuseppe Fonte and Valentina Za. Editing by Jane Merriman
Our Standards: The Thomson Reuters Trust Principles.