Major Move in the Italian Banking Sector! This morning, UniCredit announced a €10 billion share-for-share offer for its rival, BancoBPM. This marks a significant step towards the long-anticipated consolidation in Italy's banking landscape. * Historical Context: From 1999 to 2008, there were 35+ deals exceeding €1 billion, but only 3 such deals have emerged since the financial crisis. * Valuation Shifts: pre-financial crisis price/book multiples above 2 and price/earnings multiples above 30 were commonplace. Now we’re routinely seeing price/book ratios below 1 and price/earnings in the single digits. This shift in valuations reflects the greater risk in the sector, which has seen a number of bailouts, as well as a more cautious market environment. #MergersAndAcquisitions #UniCredit #BancoBPM #Banking #Finance #BorsaItaliana #FinancialNews #Investment #CorporateStrategy
