UniCredit Increases Stake in Alpha Bank
In a strategic move to expand its influence in the Greek banking sector, Italy’s UniCredit has increased its stake in Alpha Bank to approximately 29.5%, following approval from the European Central Bank (ECB). This latest development intensifies the Italian bank’s investment activities in Alpha Bank, signalling a clear intent to broaden its influence across European banking markets.
UniCredit’s Strategic Investments in Alpha Bank
Over the past couple of years, UniCredit has been steadily increasing its stake in Alpha Bank. The bank’s initial decision to acquire a 9% stake in Alpha Bank and purchase its Romanian subsidiary occurred in October 2023. The stake increases continued in August and May of the following year, demonstrating UniCredit’s commitment to strengthening its investment in the Greek bank.
In May, UniCredit requested regulatory approval to increase its stake in Alpha Bank to as much as 29.9% after having doubled its investment in the Greek bank. After obtaining the necessary regulatory approvals, UniCredit announced that it will equity consolidate 9.8% of its current stake. The Italian banking titan mentioned that the timing and decision to convert and consolidate the remaining stake in Alpha Bank, which is held through derivative financial instruments, will be determined at a later date.
In a statement, UniCredit affirmed, “The capital impact in case of the potential full conversion of the financial instruments to reach a direct stake of c.29.5% remains at around -80 bps of CET1 ratio as previously communicated.”
Future Collaboration Plans Between UniCredit and Alpha Bank
UniCredit has outlined plans to expand collaboration with Alpha Bank in several areas. These include payments, financing services, advisory, capital markets, asset management, and insurance products. The decision to convert and consolidate the remaining stake in Alpha Bank “will be made in the future assessing the trade-off between return and profit contribution on one side and capital impact and distributions on the other,” the bank stated.
Interestingly, UniCredit’s involvement in Alpha Bank has been welcomed by authorities in Greece, a stark contrast to the resistance the bank has encountered in other parts of Europe.
CEO Andrea Orcel’s Active Role in European Acquisitions
Andrea Orcel, the 62-year-old CEO of UniCredit, has been proactive in pursuing acquisitions across Europe in recent years. Despite facing governmental hurdles with his major projects involving Commerzbank AG in Germany and Banco BPM SpA in Italy, the investment in Alpha Bank stands out as a positive development. Both the management of Alpha Bank and the Greek government have shown a warm reception to the Italian investor.
In summary, UniCredit’s increased stake in Alpha Bank signifies a strategic move to bolster its influence in Greece’s banking sector. With the necessary approvals from the ECB, the bank is poised to make significant strides in its collaboration with Alpha Bank. This development not only augments UniCredit’s presence in Europe but also highlights the proactive role of its CEO in pursuing lucrative acquisitions.
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