UniCredit Doubles Stake in Alpha Bank to Nearly 20%, Signifying Strategic Shift
Milan/Athens – Italian banking giant UniCredit has significantly increased its stake in Greece’s Alpha Bank to almost 20%, the bank announced on Wednesday. This move, which is pending regulatory approval, signals a strategic pivot by UniCredit, which has faced obstacles in its merger and acquisition (M&A) ambitions elsewhere.
UniCredit’s CEO, Andrea Orcel, a seasoned dealmaker hired in 2021, has been pushing for an expansion of the bank’s footprint. However, efforts to acquire domestic peer Banco BPM have been challenged in court due to government conditions, and aspirations to merge with Germany’s Commerzbank are currently on hold due to resistance from the German government.
The increased stake in Alpha Bank was achieved through the use of derivatives, allowing UniCredit to acquire an additional 9.7% at a discount to Alpha’s recent closing price. UniCredit already held a 9.6% stake, making it Alpha’s primary shareholder since late 2023 when it purchased the Greek bank bailout fund’s stake for €293.5 million. That earlier deal also saw UniCredit acquire most of Alpha’s Romanian business and forge a partnership to distribute its asset management products to Alpha Bank’s 3.5 million clients.
The move has been welcomed by both Alpha Bank’s CEO Vassilios Psaltis and Greek central banker Yannis Stournaras, who called it a “very positive development.” Stournaras noted that UniCredit was acquiring the stake held by Dutch investment group Reggeborgh.
UniCredit plans to seek European Central Bank (ECB) approval to further increase its holding in Alpha Bank to up to 29.9%. This larger stake will allow UniCredit to book the investment in a way that is expected to generate an additional net profit of approximately €180 million per year, which the bank intends to return to shareholders. The impact on UniCredit’s core capital is estimated to be around 40 basis points.
Orcel’s strategy has heavily relied on generous shareholder payouts to boost share price and set the stage for potential acquisitions. While UniCredit recently raised its profit outlook for the year, it has maintained that any future deals must significantly enhance its “unmatched” standalone prospects. Despite its recent acquisition of a 28% stake in Commerzbank via derivatives in late 2024 and a stake in Assicurazioni Generali, Orcel has ruled out a takeover bid for Italy’s largest insurer following warnings from rival Intesa Sanpaolo, highlighting a broader competitive dynamic in the Italian banking sector.
Click here for more on Finance and Investing