United States Bank Mergers & Acquisitions (BB&T)

 

A BB&T office in Greensboro, North Carolina. 

Photo credit: Warren LeMay. You can see more of his photos via this link: https://www.flickr.com/photos/warrenlemay

BB&T (Branch Banking & Trust)

BB&T traces its origins to eastern North Carolina in the aftermath of the American Civil War (1861 to 1865) during which the area was struggling to recover and rebuild from the devastation of four years of bloody fighting between the Union and Confederacy forces. Countless lives were lost, and the livelihoods of those who survived were often ruined. Many families were physically and emotionally torn across both geographical and ideological battle lines. The economy, along with many farms and towns, and businesses and homes suffered catastrophic damages. The end of the Civil War unfortunately did not mean the end of the divisiveness, distrust and political and personal resentments.

Against, or perhaps one should say despite this hardship, Alpheus Branch, the son of a wealthy planter in Halifax County, moved to Wilson County and eventually married Nannie Barnes, the daughter of prominent figure General Joshua Barnes and one of Wilson’s early founders. Alpheus Branch launched a mercantile business called Branch & Co. and he became acquainted with Thomas Jefferson Hadley, another important local leader. In 1872, Alpheus Branch and Thomas Jefferson Hadley joined forces and launched a private bank named Branch & Hadley. The new concern accepted deposits and made loans to local planters and businesses. The U.S. Southeast by the 1880s had returned to rising prosperity, as the traditional crop of cotton was supplemented by the new cash crop of tobacco. In 1887, Mr. Branch bought out his partner’s interests and Branch & Hadley became Branch & Co., Bankers.

Then in 1889, Alpheus Branch, his father-in-law Gen. Joshua Barnes, Branch’s old business partner Thomas Jefferson Hadley, along with J.F. Bruton, R. L. Thompson and Walter Brodie were granted a state charter from the North Carolina legislature to establish the Wilson Banking & Trust Co. The original intention of the new business was to offer banking, trustee and custodian services but a legislation change prevented the banking concern from actually carrying out its trust business until 1907.

Meanwhile, Alpheus Branch had died in 1893 and in 1900, his private bank Branch & Co., Bankers was incorporated into the Branch Banking Co., holder of the state charter and successor to the Wilson Banking & Trust Co. following two name changes. In 1913 – some six years after the launch of the trust services, Branch Banking Co. changed its name to Branch Banking & Trust Co., or BB&T for short.

In comparison with Europe, mainland United States escaped World War I physically unscathed and enjoyed a booming economy in the 1910s and 1920s. During this time, Branch Banking & Trust earned the reputation as one of the larger and stronger banks in North Carolina. The bank also expanded into the insurance and mortgage loan markets in 1922 and 1923 respectively.

When America’s over exuberance collapsed in 1929, the ensuing stock market crash and Great Depression caught many ordinary people and businesses big and small off-guard. Between January 1930 and January 1932 alone, well over 100 banks in North Carolina went bankrupt when their borrowers defaulted on their loans. As panics set in, bank runs saw the public transferring their deposits from Wilson’s seven other banks to the government-run United States Postal Savings System. What many didn’t know was that the postal savings system was not a bank on its own per se, but simply re-deposited the funds to designated banks. In Wilson County’s case, the postal savings’ banker was none other than Branch Banking & Trust. Thus, while Wilson’s other banks collapsed, BB&T enjoyed the confidence of government officials and remained financially healthy. As a matter of fact, as hundreds of banks failed in North Carolina between 1929 and 1933, BB&T’s network grew from five to eleven branches, and total assets increased almost threefold. 

The 1930s slump then came to an abrupt end when World War II broke out in 1939, as wartime demand for military machinery and foods trumped other concerns. Notwithstanding its massive tolls to lives, properties and the environment elsewhere, the global conflict lifted the American economy, employment and prosperity. A combination of patriotism and war-time restrictions on the production of non-war-related civilian consumer goods also caused personal savings to rise steadily, as things were just generally not available for sale. When peace returned in 1945, the returning soldiers and a massive influx of immigrants from war-torn Europe and other parts of the world to the U.S. led to a sharp increase in the demand for consumer goods, automobiles, machinery, infrastructure construction, housing, food staples, and consumer and business services – in other words – everything.

BB&T rode on this unprecedented post-WWII growth and the height of the so-called “American century” so that by the end of the 1960s, it ran a network of 60 branches in 35 cities in North Carolina. Legislative changes in the 1980s and 1990s slowly loosened up inter-state banking restrictions in the U.S., and by 1994, BB&T’s network numbered over 260 branches across both North and South Carolina. By this time, BB&T was the fourth largest bank in its home state.

In late 1994, BB&T Financial Corp. and Winston-Salem-based Southern National Corp. (fifth largest bank in North Carolina) agreed to merge in a deal that was valued at USD $2.2-billion. The combined bank became the largest bank in terms of deposits in North Carolina and the No. 3 in South Carolina with over 430 branches, including a small operation in Virginia. This merger also led to the new bank transferring its headquarters from Wilson to Winston-Salem, the home base of Southern National Corp. In 1996, Southern National took over United Carolina Bancshares Corp. for USD $985-million. United Carolina had a network of 153 branches across North and South Carolinas. The following year, Southern National resurrected and renamed itself BB&T Corp.

During the rest of the 1990s and the early 2000s, BB&T continued to expand outside of its stronghold in the Carolinas, buying up numerous regional and community banks one by one but yet building up an ever-increasing presence in Virginia, West Virginia, Maryland, Washington DC, Georgia and Tennessee. Some of the more significant takeovers (those valued at at least USD $200-million, or those that represented entry to a new market) are listed below.

Recent transactions:

• Between December 1997 and February 1998, BB&T bought Franklin Bancorporation of Washington, D.C. (for USD $165-million) and Maryland Federal Bancorp (USD $265-million). This marked BB&T’s first forays into the wealthy capital city area.
• In August 1998, BB&T acquired two financial institutions in Virginia: MainStreet Financial Corp. of Martinsville for USD $554-million and stockbroker Scott & Stringfellow Financial Inc. of Richmond for USD $131-million. MainStreet operated 46 branches in Virginia and three in Maryland.
• In January 1999, BB&T bought Mason-Dixon Bancshares Inc. of Westminster in Maryland for USD $257-million. The bank had 38 offices in the state.
• Also in January 1999, BB&T took over First Citizens Corp. of Newnan for USD $126-million. While the transaction was small, it became BB&T’s first entry into the state of Georgia with a network of 14 offices in south metropolitan Atlanta.
• In April 1999, BB&T purchased First Liberty Financial Corp. of Macon for USD $500-million. The purchase gave BB&T a network of 52 branches in the Macon and Savannah areas of Georgia.
• In what was its third acquisitions in Georgia in 1999, BB&T took over Premier Bancshares Inc. for USD $624-million in July. Premier had 42 branches in Atlanta and Northern Georgia.
• In July 2000, BB&T acquired FCNB Corp. of Frederick for USD $226-million. FCNB ran 34 offices in the central Maryland-Washington, D.C. corridor.
• Also in July 2000, BB&T purchased One Valley Bancorp Inc. of Charleston for USD $1.13-billion. The acquisition gave BB&T a network of 77 branches in West Virginia and another 48 in Virginia.
• In August 2000, BB&T took over BankFirst Corp. of Knoxville for USD $150-million. The small purchase was BB&T’s first entry into the state of Tennessee.
• In June 2001, BB&T bought Century South Banks Inc. of Alpharetta for USD $467-million. In doing so BB&T gained 40 offices in Georgia, North Carolina, Tennessee and Alabama.
• In August 2001, BB&T took over F&M National Corp. of Winchester. The holding company operated 174 branches and offices providing banking, mortgage, insurance and trust services in the Historic Triangle area of Virginia, Richmond and the metropolitan Washington, D.C. area.
• In November 2001, BB&T acquired MidAmerica Bancorp of Louisville in Kentucky for USD $415-million. MidAmerica operated 30 branches mainly through its Bank of Louisville subsidiary.
• Also in November 2001, BB&T took over AREA Bancshares Corp. for USD $451-million. AREA had 72 branches in Kentucky.
• In May 2002, BB&T bought Regional Financial Corp. (First South Bank) of Tallahassee for USD $275-million. First South Bank operated 22 offices in Tallahassee and the Florida Panhandle, Jacksonville, and along the Gulf Coast from Beverly Hills to Naples.
• In January 2003, BB&T made a big expansion in Virginia when it acquired First Virginia Banks Inc. for USD $3.38-billion. First Virginia’s subsidiaries operated 364 branches in total: 298 in Virginia, 55 in Maryland and 11 in northeast Tennessee.
• In April 2004, BB&T took over Republic Bancshares Inc. St. Petersburg for USD $392-million, gaining a network of 71 branches in Southeast Florida.
• In December 2005, BB&T acquired Main Street Banks Inc. of Atlanta for USD $623-million. Main Street Banks had 29 banking and insurance offices in Atlanta and Athens, Georgia.
• In December 2006, BB&T took over Coastal Financial Corporation of Myrtle Beach for USD $395-million. It had 17 branches in greater Myrtle Beach and seven in greater Wilmington, South Carolina.
• In June 2009, BB&T repaid the U.S. government the USD $3.1-billion that it received under the Troubled Asset Relief Program (TARP) after regulators determined the bank was well capitalized.
• In August 2009 during the global credit crisis that started in 2008, Colonial Bank of Montgomery failed and was shut down by the Alabama State Banking Department and the Federal Deposit Insurance Corporation (FDIC). In a brokered agreement with the FDIC, BB&T took control of all Colonial Bank’s 346 branches and USD $20-billion of client deposits in Alabama, Florida, Georgia, Nevada and Texas. The FDIC and BB&T agreed to share losses on about $15 billion of those assets.
• In February 2019, Winston-Salem-based (North Carolina) BB&T agreed to acquire SunTrust Banks, Inc. for USD $28.24-billion in stock. Announced as a “merger of equals”, the former BB&T shareholders would control 57% of the new bank, with SunTrust holders owning the rest. The new bank would be known as Truist Financial (pronounced “True-ist”), the unusual choice of which was mocked by many after the announcement. Truist would become the No. 6 bank in the U.S. and move its headquarters to Charlotte, but Winston-Salem would become the bank's headquarters for community banking. At the time of the merger announcement, SunTrust had about 1,300 branches and BB&T about 1,800 branches. A major consolidation of the branch network was expected.

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United States Bank Mergers & Acquisitions (SunTrust Banks)

Photograph by Michael Gluzman. 

Photo: A blimp branded with SunTrust advertisement seen flying high above Atlanta. Special thanks to Michael Gluzman for granting me the permission to use his image.

SunTrust Banks was formed in 1985 when the Trust Co. of Georgia and Florida’s SunBanks merged – the former traces its origins to 1891 when the Commercial Travelers Savings Bank was founded in Atlanta by businessman Joel Hurt. Two years later, Mr. Hurt and another member of the board Ernest Woodruff spurred the re-organization of the bank into the Trust Co. of Georgia to better reflect its main business lines: trust and investment banking. This name would pretty much remain in use for the next 100 years. Though locally, the financial institution was often known simply as “the Trust Company”.

Mr. Woodruff would rise to the president of the Trust Company in 1904, and under his leadership the Trust Company brokered the consolidations of numerous companies and industries, establishing its position as a prominent player in the merchant banking and investment banking business in Atlanta.

Then in 1919, Mr. Woodruff made one of the shrewdest and most storied moves in corporate America’s history when he led a consortium to purchase The Coca-Cola Company from formula patent holder Asa G. Candler for USD $25-million. Later in that same year, the Trust Company underwrote the partial flotation of The Coca-Cola Co. In return, the Trust Company received USD $110,000 (in 1919 dollars) worth of Coca-Cola shares that it held for decades. That transaction cemented the close ties between the two Atlanta institutions for the decades to come. Until 2011, the only hand-written formula recipe of the carbonated brown syrup the world has known and tasted for over 100 years was stored in a secured vault in SunTrust Banks’ head office in Atlanta. In that year, the recipe was transferred to a vault in the World of Coca-Cola, which (the vault, not the recipe) is now on public display. The Trust Co. of Georgia (and later SunTrust) also held a stake in the Coca-Cola Co. until 2012.

The 1920s was an interesting decade for the predecessor banks that became SunTrust. Back in the early years of the Trust Company, a certain Colonel Robert James Lowry had been its president, but he left in 1895 to tend to his own bank Lowry Bank. In 1907, Lowry National Bank, by then having obtained a national charter, acquired the commercial banking operations of the Trust Company, rendering the latter once again as a pure trust company. In exchange, the Trust Company received 2,000 shares of Lowry National Bank. Then in 1923, the Trust Company combined with Lowry National and gave up the latter’s national charter, and the new entity adopted the name Lowry Bank & Trust Co. of Georgia and became a state-chartered bank again.

Just one year later, a complex three-way reorganization was carried out involving Lowry Bank & Trust and Georgia’s oldest nationally-chartered bank, Atlanta National Bank: the trust business of Lowry was once again spun off and resumed the old name the Trust Co. of Georgia, while Lowry merged with Atlanta National to become Atlanta & Lowry National Bank. Initially, the shareholders of Atlanta & Lowry National also fully controlled the Trust Co. of Georgia, so both financial institutions were still closely linked. This changed in 1933 when the federal Banking Act (part of which was the so-called Glass-Steagall Act) required deposit-taking banks be separated from securities dealers, and the Trust Co. of Georgia became fully independent from the First National Bank of Atlanta, the successor bank of Atlanta & Lowry National following another merger in 1929.

During the Great Depressions of the 1930s, the Trust Company gained majority ownership of five Georgian banks outside of Atlanta – in Augusta, Columbus, Macon, Rome and Savannah. Between the 1950s and 1970s, however, a change in policy ideology led to the passing of banking regulation that witnessed Georgia having one of the most stringent “statewide banking” restrictions in the U.S. Essentially, to protect small local banks, banks based in a city or county were no longer permitted to acquire banks outside of their home turfs – in other words – banks could not cross city or county borders. This severely "boxed" Georgia's banks into their home markets until 1970. In 1971, the name Trust Company Bank and TCG Bank were adopted and when statewide banking became legal, it promptly expanded into other markets in the state.

Outside of the home state, federal legislation known as the McFadden Act (1927) and Bank Holding Company Act (1956) gave each individual state the power to prohibit “inter-state banking”, so that banks in one state could not cross the state line and operate in another state, unless the home state of the acquired bank allowed such acquisitions. The inter-state banking ban only began to be relaxed in the late 1970s, beginning in state of Maine, and very slowly spreading to other states throughout the 1980s.

In some cases, the relaxation of inter-state banking began with regional reciprocal inter-state banking agreements. In 1985, Georgia and Florida passed reciprocal interstate banking agreements allowing the banks from either state to enter each other’s jurisdiction. The relaxation started a frenzy of cross-state-line consolidations across the Southeast as banks sought to expand into neighbouring markets as well as to build up their own scale to avoid being swallowed up. In July 1985, the Trust Co. of Georgia and Orlando-based SunBanks, Inc. merged and became the first inter-state banking merger under the reciprocal agreement in the Southeast. The new parent company took the name SunTrust Banks, Inc. but the two banks remained separate legal entities for years, as full operational integration across state lines was still illegal. The newly created SunTrust banks had USD $16.3-billion of assets. Soon after, other smaller acquisitions were made.

In 1986, SunTrust entered the Tennessee for the first time by acquiring the Third National Corp. of Nashville for USD $734-million. SunTrust added Third National’s 12 banks and 134 offices in the state to its 44 banks and 480 offices in Georgia and Florida. Also in 1986, SunTrust Securities was established to expand the bank’s product line.

Following years of operating under a decentralized manner and a mishmash of separate legal subsidiaries, SunBanks in Florida, Trust Co. of Georgia and Third National in Tennessee were unified as SunTrust beginning in 1995, when nationwide banking finally became legal in most states in America.

Recent transactions:

• In 1998, SunTrust made a major move northward when it spent USD $8.6-billion to acquire Richmond-based (Virginia) Crestar Financial Corp. The purchase made SunTrust the 10^th largest bank in the country. Crestar’s 396 branches in Virginia, Maryland and the District of Columbia would join SunTrust’s 697-office network in Florida, Georgia, Tennessee and Alabama.
• Also in 1998, SunTrust spent USD $150-million to acquire Tennessee’s Securities Co., a provider of equities underwriting services.
• In 2001, SunTrust purchased the Florida network of Huntington Bancshares Inc. for USD $705-million. Already a major player in the state, the purchase bolstered SunTrust to the No. 3 bank in Florida with 59 additional branches.
• Also in 2001, SunTrust made a bold move by launching a USD $14.7-billion hostile bid for North Carolina-based Wachovia Corp. SunTrust’s offer was about $1 billion higher than the one that Wachovia had accepted from First Union Corp. However, Wachovia’s shareholders eventually opted to merge with First Union instead of with SunTrust.
• Also in 2001, SunTrust acquired institutional capital markets business Robinson-Humphrey Company from Citigroup subsidiary Salomon Smith Barney to form SunTrust Robinson Humphrey.
• In 2004, SunTrust further cemented its position in the Southeast when it took over Memphis-based National Commerce Financial Corp. for USD $6.98-billion. National Commerce Financial operated primarily as the National Bank of Commerce and Central Carolina Bank with over 460 offices in Tennessee, North and South Carolina, Mississippi, Arkansas, Georgia, Virginia, West Virginia and Alabama. The purchase made SunTrust the No. 7 bank in the U.S. and the third largest in the Southeast with just over 1,690 branches and over 2,700 ATMs.
• In 2012, partly due to more stringent federal capital requirements, SunTrust sold its remaining 59 million of the 60 million shares of The Coca-Cola Co. that it first obtained in 1919 when its predecessor Trust Co. of Georgia underwrote the carbonated drink maker’s the initial public offering. The remaining 1 million shares were donated to the SunTrust Foundation.
• In 2019, Charlotte-based (North Carolina) BB&T Corp. agreed to acquire SunTrust Banks, Inc. for USD $28.24-billion in stock. Announced as a “merger of equals”, the former BB&T shareholders would control 57% of the new bank, with SunTrust holders owning the rest, with a combined market capitalization of about USD $66-billion. The new bank would be known as Truist Financial (pronounced “True-ist”), the unusual choice of which was mocked by many after the announcement. Truist would become the No. 6 bank in the U.S. and be based in Charlotte. SunTrust had about 1,300 branches and BB&T about 1,800 branches. As 740 branches of the two banks are within two miles of each other, many of them might be consolidated within a few years.

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USA Bank Mergers & Acquisitions (Truist Financial)

Truist Financial

Truist Financial Corp. was formed in December 2019 by the merger of BB&T Corp. of Winston-Salem (North Carolina) and SunTrust Banks, Inc. of Atlanta. The merger was announced back in February 2019 and at the time valued at USD $28.24-billion in stock. Announced as a “merger of equals”, the former BB&T shareholders would control 57% of the new bank, with SunTrust holders owning the rest. The unusual choice of the name was mocked by many after the announcement. Truist would become the No. 6 bank in the U.S. and move its headquarters to Charlotte, but Winston-Salem and Atlanta would both retain some "head office" functions for certain divisions of Truist.

At the time of the merger announcement, SunTrust had about 1,300 branches and BB&T about 1,800 branches. A major consolidation of the branch network was expected.

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Italy Bank Mergers & Acquisitions (Banco BPM)

In the 1970s, Italy suffered from a severe shortage of small-denomination coinage, and commercial banks issued their own small-denomination banknotes known as miniassegno (or miniassegni in plural) like this 50 Italian lira miniassegno issued by the Banca Popolare di Milano (today's Banco BPM). Though not legal tender, the miniassegni were widely circulated and used to represent small change at the time.

Banco BPM (2016 to present)

Banco BPM was formed in October 2016 by the merger of two joint-stock co-operative banks with very similar names: Banca Popolare di Milano (Banca BPM) and Banco Popolare.  Note that the bank was known as Banca BPM before the merger with Banco Popolare, but Banco BPM after the 2016 merger. Banco BPM can trace its origins to many regional banks, whose histories can be best explained by the three banking groups that they evolved into during the first decade of the 21^st century.

The old Banca Popolare di Milano (Banca BPM)

Inspired by the co-operative moment that was prevalent in 19^th century Europe, a young economist named Luigi Luzzatti in 1865 founded the Banca Popolare di Milano. (Mr. Luzzatti would later become Italy’s Prime Minister in 1910.) Banking in the 19^th century in most of the world was typically a local business, as nationwide branch networks did not exist until the 20^th century is most cases. For Banca Popolare di Milano, its first two branches outside of its head office building opened in 1881, but only to be shut two years later, which for banks in the era was not uncommon. Before the days of computers and the internet, capital, money and information could not be easily and instantly transferred or accessed between offices. For a bank to open a branch office was almost no different from launching a brand new bank, for the branch would require its own capital and its own deposit base.  In other words, opening new branches was simply a risky and costly affair for any bank.

It wasn’t until 1911, some 30 years after its first attempt, that BPM opened a branch office in Milan once again. This time, the venture was very successful, as clients flocked to the new office and a strong deposit base was built soon. The start of World War I in 1914 initially brought panic to Italy, and a run on deposits at BPM. But being the industrial heartland of the country, soon Milan and the rest of Northern Italy prospered from the war’s soaring demand for industrial goods. Unfortunately, when peace returned in 1918, inflation remained stubbornly high, and the massive debts incurred during the war became unsustainable. The economic chaos led to a sharp depreciation of the Italian lira, and social unrest intensified during the 1920s.

The Great Depression of 1929, which originated in the United States, further aggravated Italy’s already decade-long stagflation. This economic and social crisis culminated in the 1933 collapse of the Italian banking system. The three largest banks in the country were nationalized while many smaller ones either went bankrupt, or were ordered by the Italian government to join the somewhat more healthy banks.

In due course, BPM did survive both the Great Depression and World War II. By the time peace returned in 1945, BPM had 5 branches as well as 33 agencies.

In the 1950s, BPM sought to expand beyond its Lombardy border. However, Italy’s bureaucratic and protectionist political system banned regional banks based in one province from entering another province directly. They were, however, allowed to acquire regional banks outside of their domicile in some cases, particularly if the target banks were financially unstable. In 1957, BPM made its first corporate acquisition by taking over the Banca Popolare di Roma (founded in 1924), allowing the Milan-based bank to expand into Rome and forge direct links between Italy’s two largest cities.

During the 1960s and 1970s, BPM benefited from Milan’s and Lombardy’s robust industrial economy. As such, BPM opened many new branches to capture the growing economic prospect. However, BPM also faced fierce competition from other co-operative and savings banks, as well as the much bigger national banks that specialized in corporate and merchant banking. Over time, regional banks formed strategic alliances with each other to achieve better synergy, to spread their credit risk, and to offer greater geographical reach for their respective clients. During this period, BPM acquired a minority stake in an agricultural bank called Banca Agricola Milanese and well as a 60% stake in a fellow co-operative bank called Banca Briantea.

While BPM was keen as a consolidator of other banks, Banca d’Italia, the Central Bank, blocked numerous merger attempts proposed by BPM and other co-operative, savings and even national banks. The long-held political and corporate culture of small-scale, local and autonomous businesses was not to be ruffled. In 1979, however, when Banca Popolare Cooperativa Vogherese became illiquid, BPM was permitted to rescue and take over the ailing bank.

BPM for the first time opened offices outside of Italy (in London, New York and Frankfurt) during the 1980s to provide support to the bank, and to raise its profile internationally. Towards the end of the decade, the European Union began to constitute a “single-market” framework, with the aim to open up borders to allow free movement of goods, services, capital and people between all member states, to be effective in 1993. This policy would throw the Italian banking market wide open to competition from other EU banks. To prepare the backward and fragmented domestic banking market for the new competition, Italy proposed a plan that centred on four goals: de-nationalization (relinquishment of state management), consolidation, modernization and strengthening. The former anti-consolidation policy was relaxed and in due course, BPM took over the Banca Popolare di Bologna e Ferrara in 1988, and the Banca Popolare di Apricena in 1989.

Throughout the 1990s, BPM entered the equipment finance (leasing) and life insurance business by forming joint-ventures with merchant and investment bank Mediobanca and insurer RAS. And in 1994, BPM became the first co-operative bank in Italy to be listed on the main stock market. Previously, its stock had been listed on the restricted market. As such, Italy’s co-operative banking sector began a hybrid mutual-joint-stock arrangement, where its ownership structure displays traits of typical co-operative format (mutually-owned by members) but yet with shares that can be bought and sold via the stock market (joint-stock shareholding).

Beginning in 1997, BPM made an intense series of acquisitions, first of the two banks that it had held a stake for decades, namely Banca Agricola Milanese and Banca Briantea, then a significant stake in Banca Akros (1998), Banca 2000 (1999, formerly Ina Banca), Banca di Legnano (2001), savings bank Cassa di Risparmio di Alessandria (2004) and Banca Popolare di Mantova (2008).

Banca Popolare Italiana (BPI)

The holding company Banca Popolare Italiana was the new name chosen by Banca Popolare di Lodi in 2005. But it only existed till 2007, when it was taken over by the Banco Popolare di Verona e Novara for EUR 8.2-billion to become the Banco Popolare group. The year 2005 for BPI was, however, more remembered for its “bancopoli” scandal. At the time, Dutch bank ABN AMRO made a bid to acquire Italian bank Banca Antonveneta. BPI, which already owned a small stake in Banca Antonveneta, also wanted to acquire the bank but lacked the means to compete with ABN AMRO’s financial prowess. BPI then secretly acquired significant stakes in Banca Antonveneta using illegally-obtained funds, in some cases, even customer deposits at BPI. The inside stock trading, embezzlement and stock manipulation scandal was apparently known to and covered up by the Italian Central Bank, as Banca d’Italia Governor Antonio Fazio had close personal ties with BPI’s Managing Director Gianpiero Fiorani. After the scandal exploded, Antonio Fazio resigned from the Central Bank and BPI’s Gianpiero Fiorani was arrested and charged. In the end, BPI’s illegally purchased shares in Banca Antonveneta were confiscated and turned over to the only legitimate offer: ABN AMRO.

The major predecessor banks that became BPI are briefly explained below.

Banca Popolare di Lodi (1864 to 2007)

The core predecessor of Banca Popolare Italiana (BPI) was the Banca Popolare di Lodi, which was founded in 1864.  Lodi is a province in the Italian region of Lombardy. Like many co-operative banks, it offered banking services but also supported local infrastructure and economic development. By the late 1980s, the bank had expanded outside of Lombardy into Emilia Romagna, Lazio and Piedmont with 110 branches.

At the turn of the 21^st century, Banca Popolare di Lodi made a wave of acquisitions including three savings banks Casse di Risparmio di Lucca, Pisa e Livorno* in 1999 (banks followed by an asterisk * have separate descriptions below), investment bank Efibanca - Ente Finanziamenti Industriali (2000), ICCRI – Istituto di Credito delle Casse di Risparmio Italiane (2000), Cassa di Risparmio di Imola* (2000), Banca Popolare di Crema* (2001), Banca Popolare del Trentino* (2003), Banco di Chiavari e della Riviera Ligure* (2003) and Banca Popolare di Cremona* (2003). In 2005, a parent company known as Banca Popolare Italiana (BPI) was formed to hold the various banks acquired by Banca Popolare di Lodi over the past decade.

Cassa di Risparmio di Lucca Pisa Livorno (1834/35/36 to 1999)

This savings bank traces its history to three different institutions: Cassa di Risparmio di Pisa (founded 1834), Cassa di Risparmio di Lucca (founded 1835) and Cassa di Risparmio di Livorno (founded 1836). Like other casse di risparmio, C.R. di Pisa, C.R. di Lucca and C.R. di Livorno in the early 1990s were converted to joint-stock banks and separated from the charitable foundations that held them. In 1995, these three savings banks amalgamated under a parent company called Holding Casse del Tirreno. In 1999, Casse del Tirreno joined the Banca Popolare di Lodi.

Cassa di Risparmio di Imola (1855 to 2000)

Like other savings banks in Italy, Cassa di Risparmio di Imola had a dual mandate to offer banking services as well as do charitable work to support the local economy and society. It was founded in 1855 and was taken over by Banca Popolare di Lodi in 2000.

Banca Popolare di Crema (1870 to 2001)

Banca Popolare Agricola di Mutuo Credito was created in 1870 in the agricultural town of Crema. The bank was later renamed Banca Popolare di Crema. It became part of the Banca Popolare di Lodi in 2001.

Banca Popolare del Trentino (1984 to 2003)

Banca Popolare del Trentino was the youngest constituent bank to become the Banco BPM. It was only established in 1984 and in 2003, it became part of the Banca Popolare di Lodi.

Banco di Chiavari e della Riviera Ligure (1870 to 2003)

In 1870, a number of businessmen founded the Banco di Sconto del Circondario di Chiavari. The bank adopted its current name in 1921. In 1968, it was acquired by the much larger Banca Commericale Italiana (BCI). In 2001, BCI merged with Banca Intesa (which become today’s Intesa Sanpaolo). Banca Intesa divested Banco di Chiavari e della Riviera Ligure to Banca Popolare di Lodi in 2003.

Banca Popolare di Cremona (1865 to 2003)

The bank began life as the Società Popolare di Mutuo Credito in Cremona in 1865. Cremona is an agriculturally-rich region in Lombardy. In 2003, Banca Popolare di Cremona became part of the Banca Popolare di Lodi.

Banco Popolare di Verona e Novara (1867 to 2007)

Banca Mutua Popolare di Verona was founded in 1867 in Italy’s booming northern industrial heartland. It opened its first branch office in 1927, and expanded outside of Verona in 1933. During the 1930s economic depression, it took over rival Banca Cattolica Veronese.

As a co-operative bank, Banca Popolare di Verona in the post-WWII era financed the re-building effort as well as new infrastructure such as railways, highways and canals. As explained earlier, Italy’s banking system in the late 1980s and the entire 1990s experienced a wave of consolidations, as the country prepared for the open-border market under the EU framework. Banca Popolare di Verona first acquired the Banca Popolare di Castiglione delle Stiviere in 1988. Between 1993 and 1995 the bank merged with the Banco S. Geminiano e S. Prospero* (banks followed by an asterisk * have separate descriptions below) to become Banca Popolare di Verona – Banco S. Geminiano e S. Prospero. Then in 1997, it took over the Credito Bergamasco*. It acquired Banca Aletti* in 2000 and in 2002, merged with the Banca Popolare di Novara*. Following this last amalgamation, the name of the bank was updated to Banco Popolare di Verona e Novara. In 2007, it took over Banca Popolare Italiana (BPI) for EUR 8.2-billion to become the Banco Popolare group.

Banco S. Geminiano e S. Prospero (1897/99 to 1995)

Emilia-Romagna is a region in Northern Italy well known for its capital city of Bologna. At the close of the 19th century, two banks that became part of the Banco BPM were established, namely the Banco S. Geminiano in the city of Modena in 1897, and the Banco S. Prospero in the city of Reggio Emilia in 1899. In 1932, these two banks consolidated into the Banco S. Geminiano e S. Prospero to gain efficiency and expand their reach.  Between 1993 and 1995, Banca Popolare di Verona and Banco S. Geminiano e S. Prospero merged to become known as – a very long and cumbersome name – Banca Popolare di Verona – Banco S. Geminiano e S. Prospero (BPV BSGSP).

Banco San Marco (1895 to 1995)

Many visitors to Venice would have come across a Banco San Marco branch in the city’s famous Piazza San Marco. The Venetian bank was founded in 1895. In 1995, the bank was taken over by Credito Bergamasco, which itself was combined into Banca Popolare di Verona – Banco S. Geminiano e S. Prospero in 1997.

Credito Bergamasco (1891 to 1997)

Credito Bergamasco was founded in Bergamo in 1891 as Banca Piccolo Credito Bergamasco. The bank had a history of supporting local art, culture, healthcare and science. In 1989, French bank Crédit Lyonnais acquired a 56% stake in Credito Bergamasco, but sold it to the Banca Popolare di Verona – Banco S. Geminiano e S. Prospero group in 1997, which in 2002 became the Banco Popolare di Verona e Novara.

Banca Aletti (1826 to 2000)

Banca Aletti began in 1826 as a bureau de change (foreign exchange dealer) in Milan. It over the decades became a stockbroker and private bank. In the 20^th century, members of the Aletti family were prominent executives of the Milan stock exchange. In 1992, Banca Popolare di Verona became a shareholder of Aletti & C. Sim. In 1998, it gained the approval to offer banking service, becoming Banca Aletti & C. In 2000, Banca Popolare di Verona took full control of Banca Aletti, which now forms the private banking and investment banking division of the group.

Banca Popolare di Novara (1871 to 2002)

Banca Popolare di Novara was created in 1871 in northwestern Italy. It grew to become one of the largest co-operative banks in Piedmont region and by the 1920s, had expanded into Milan, Genoa and even Rome in central Italy. By 1971, its network numbered 300 branches. Overseas offices were set up in England, France, Switzerland and Luxembourg by the last quarter of the 20^th century. In 2002, Banca Popolare di Novara merged with the Banca Popolare di Verona – Banco S. Geminiano e S. Prospero group. The new bank dropped the “Banco S. Geminiano e S. Prospero” part of the name and instead became known as Banco Popolare di Verona e Novara.

Recent transactions:

• In 2007, Banco Popolare di Verona e Novara took over Banca Popolare Italiana (BPI) for EUR 8.2-billion (USD $10.26-billion) and adopted a new name: Gruppo Banco Popolare. In the Italian press, the new bank was sometimes known simply as “Banco”.
• In 2016, Banca Popolare di Milano and Banco Popolare merged to become the new Banco BPM, the new Banco BPM ranked No. 3 in Italy in some measures.
• In November 2024, UniCredit offered to buy Banco BPM for EUR 10.1-billion (USD $10.6-billion). In terms of assets, UniCredit was four times as large as Banco BPM. However, as of mid-2025, it was believed that UniCredit's chance of successfully taking over Banco BPM was low.
• To starve off UniCredit's hostile bid for Banco BPM, Banco BPM made a EUR 1.6-billion offer to buy the 80% of asset manager Anima Holding that it didn't already own. In April 2025, after raising its offer to EUR 1.8-billion (USD $1.89-billion), Banco BPM successfully raised its stake in Anima Holding from 20% to 90%, valuing the whole of Anima at EUR 2.3-billion (USD $2.52-billion).

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Italy Bank Mergers & Acquisitions (UniCredit Page 3)

Photo: A UniCredit Banca branch in Roma. UniCredit Banca is UniCredit SpA's retail banking unit.


Credit: Special thanks to my dear friends Don Trynor and Rupert Pacudan for taking this photo during their Grand Tour of France, Switzerland and Italy.


UniCredit SpA (formerly known as UniCredito Italiano)

Italy’s UniCredit is a banking behemoth that came into being only in 1998 when Credito Italiano SpA acquired UniCredito SpA for ITL 19.5-trillion (USD $10.96-billion) to become UniCredito Italiano.

Between 1998 and 2003, UniCredito Italiano consolidated four other domestic regional banks, whose brief histories are explained below. The bank formally changed its name to UniCredit SpA in 2008.

Glossary:

Cassa di risparmio (casse di risparmio in plural) literally means "Chest/ Case of Savings," or savings banks in English.  In Italy, casse di risparmio are often small, state-owned savings and credit institutions controlled or managed by a municipal or regional or provincial government agency.

Monte di pietà (monti di pietà in plural) literally means "mount of compassion" in English.  They are usually church-sponsored charitable pawnbrokers that provided deposit and lending services to the poor and working class during the Renaissance period. Many of Italy's monti di pietà can trace their origins to the mid-1500s.  The monti di pietà eventually evolved into, or were taken over by the casse di risparmio (savings banks) in the 19th century.


Caritro SpA

Caritro can trace its lineage to the 1841 establishment of Cassa di Risparmio di Rovereto and the 1855 founding of Cassa di Risparmio di Trento. Rovereto and indeed the province of Trentino at the time was part of the Austro-Hungarian Empire. During the turbulent times of World War I, C.R. di Rovereto had to suspend operations. When peace returned in 1919, Trentino was transferred to Italy under the Treaty of Saint-Germain. During an economic crisis in 1934, C.R. di Trento and C.R. di Rovereto merged to become the Cassa di Risparmio di Trento e Rovereto.

Fast forward to 1992, C.R. di Trento e Rovereto in compliance with the Amato savings bank reform law was split into a joint-stock bank called Caritro SpA and its holding entity Fondazione Cassa di Risparmio di Trento e Rovereto. In 1998, the holding foundation transferred Caritro SpA to UniCredito Italiano in exchange for a minority stake in UniCredito Italiano.


CRTrieste-Banca SpA

In 1842, the Monte Civico e Commerciale was founded by the Trieste municipal government and chamber of commerce. Trieste at the time was an Italian-speaking region of the Austro-Hungarian Empire along the present-day Italian-Slovenian border. In 1877, the institution changed its name to Cassa di Risparmio Triestina. With the dissolution of the Austro-Hungarian Empire at the end of World War I, Trieste was transferred to Italy.

In 1938, the savings bank changed name once more to Cassa di Risparmio di Trieste. At the end of World War II in 1945, the southern part of the Trieste province was transferred to Yugoslavia (present-day Slovenia). C.R. di Trieste thus lost some its branches and operations in the areas that were handed over to Yugoslavia.

During the 1980s, C.R. di Trieste opened representative offices in Eastern Europe, namely in Koper, Slovenia (also known as Capodistria in Italian), Prague and Budapest. In 1992, C.R. di Trieste was split into joint-stock bank CRTrieste-Banca SpA and its holding foundation.

In 1998, UniCredito Italiano first acquired a 28% interest in CRTrieste-Banca, a prelude to its eventual full acquisition of the regional bank.


Banca dell’Umbria 1462

In 1908, the Cassa di Risparmio di Perugia was established. Amongst the other financial institutions it amalgamated in the 20th century was the 1972 acquisition of Monte di Pietà di Perugia, which was founded in 1462 and the earliest recorded monte di pietà in Italy.

The separation of Cassa di Risparmio di Perugia into the limited-liability bank and its holding foundation happened in 1992. In 1999, the bank adopted the new name Banca dell’Umbria 1462, taking advantage of its remote lineage to the original Monte di Pietà in Perugia that was established in 1462.

In 2000, UniCredito Italiano’s Rolo Banca 1473 unit bought 71.8% of Banca dell’Umbria 1462 for Eur 315-million.


Cassa di Risparmio di Carpi SpA

In 1843, the Duke of Modena approved the creation of the Cassa di Risparmio di Carpi as a savings bank. Like other savings bank, C.R. di Carpi had a history of funding local socio-economic, educational and infrastructural projects. For example, the bank’s 1927 article of association required that 30% of the bank’s profits be directed to chartable and public works.

In compliance with the Amato Law, C.R. di Carpi in 1991 was split into the for-profit Cassa di Risparmio di Carpi SpA and the holding charitable foundation Fondazione Cassa di Risparmio di Carpi. In 2000, UniCredito Italiano (via its Rolo Banca 1473 unit) bought 73.8% of Cassa di Risparmio di Carpi for Eur 238-million. By 2003, UniCredito Italiano had taken full control of C.R. di Carpi when the minority shareholdings were bought out.


Recent transactions (from 1998 onwards):

• In 1999, UniCredito Italiano bought 50.1% of Poland’s No. 2 bank, Bank Pekao for Euro 1.03-billion (USD $1.0-billion).
• In 2000, UniCredito Italiano bought 50.6% of Splitska banka d.d. for Eur 48-million. Splitska banka was Croatia’s No. 3 bank with a network of 70 branches. Following a Eur 10-million capital injection, UniCredito Italiano’s stake in the Croatian bank was raised to 62.6%.
• In 2000, UniCredito Italiano bought another 51% of Slovakia’s Pol’nobanka for Eur 30-million. Pol’nobanka had 45 branches. One of UniCredito’s predecessors, Cassamarca, had held a 5% stake in the Slovak bank since 1995.
• In 2000, UniCredito Italiano bought Boston-based Pioneer Group’s global investment management division, Pioneer Global Asset Management, for ITL 2.68-trillion (USD $1.23-billion).
• In 2000, insurance giant Generali sold its 36.9% interest in CRTrieste-Banca to UniCredito Italiano, which had had a 28% interest since 1998. Subsequently, UniCredito Italiano launched an offer for the remaining shares held by the public, raising its total stake in CRTrieste-Banca to 79%.
• In 2000, UniCredito Italiano along with Allianz AG, bought 98% of Bulbank AD, Bulgaria’s No. 1 bank, for Eur 360-million (USD $344-milion). UniCredito Italiano took up 93% of Bulbank, while Allianz’s share was 5%. Bulbank had 28 full branches plus 51 representative offices.
• In 2000, UniCredito Italiano took a 10% stake of Zagrebačka banka d.d., Croatia’s No. 1 bank.
• Between 2002 and 2003, the various retail banks under the UniCredito Italiano umbrella were merged into UniCredit Banca as part of the S3 project. The S3 project referred to the three core segments of the group: retail banking, enterprise banking and private banking.
• In 2002, UniCredito Italiano bought 82.5% of Demirbank Romania, continuing its aggressive expansion in the Central and Eastern European market.
• In 2002, UniCredito Italiano and partner Allianz took full control of Croatia’s Zagrebačka banka d.d. With this purchase UniCredito Italiano now controlled Croatia’s No. 1 and No. 3 banks. In order to comply with Croatia’s anti-monopoly regulation, the Italian lender agreed to sell its 62.6% of stake in Splitska banka to HVB Group’s Bank Austria unit for Eur 94-million. Later in 2005 though, when UniCredito Italiano took over HVB Group and Bank Austria, it indirectly re-acquired control of Splitska banka, and was required to sell it a second time.
• In 2002, UniCredito Italiano bought 50% of Turkey’s Koc Financial Services from Koc Holding for USD $240-million. Koc Financial Services controlled the 115-branch Kocbank.
• In 2002, UniCredito Italiano bought 85.2% of Czech Republic’s Živnostenská banka A.S, which operated 8 branches and 19 agencies.
• In 2005, UniCredito Italiano’s 50% owned Turkish joint-venture Koc Financial Services bought 57.42% of Yapi ve Kredi Bankasi A.S. for Eur 1.16-billion.
• In 2005, UniCredito Italiano took over all of Germany’s HVB Group and its 77.5% owned Bank Austria Creditanstalt and Bank Austria Creditanstalt’s 71.2% owned Bank BPH (of Poland) for Eur 15.4-billion. UniCredito Italiano also made an offer to acquire the 22.5% of Bank Austria Creditanstalt not yet owned by HVB Group for Eur 2.63-billion, and the 28.8% of Bank BPH not yet owned by Bank Austria Creditanstalt for Eur 1.48-billion. The total offer for 100% of HVB Group, Bank Austria Creditanstalt and Bank BHP was thus Eur 19.5-billion (USD $24.5-billion). The enlarged UniCredito Italiano will have over 7,000 braches in 19 countries serving more than 28-million clients.
• In 2006, due to opposition from the Polish banking regulator over UniCredito Italiano’s control over both Bank Pekao and Bank BPH (Poland’s No. 2 and No. 3 banks), UniCredito Italiano withdrew its Eur 1.55-billion offer for 28.8% of Bank BPH, though it still indirectly owned 71.2% of the Polish bank BPH through its purchase of Germany’s HVB Group.
• In 2006, UniCredito Italiano’s subsidiary Bank Austria bought Russian stockbroker ATON for USD $424-million.
• In 2006, UniCredito Italiano’s Bank Austria Creditanstalt unit bought 46.2% of International Moscow Bank from other minority shareholders for USD $810-million. Following the purchase, UniCredito Italiano’s held just over 90% of International Moscow Bank.
• Back in 2002, UniCredito Italiano briefly owned both Zagrebačka banka, and Splitska banka, two of Croatia’s top banks. In order to satisfy Croatia’s anti-monopoly regulation, UniCredito Italiano sold Splitska banka to HVB Group in 2002, but only to gain it back when it bought out HVB Group in 2005. UniCredito Italiano was again required to sell Splitska banka in 2006, this time to France’s Société Générale SA for Eur 1.0-billion.
• In 2006, Turkey’s Kocbank merged with Yapi ve Kredi Bankasi, the name Kocbank was retired. The enlarged Yapi Kredi became Turkey’s No. 4 bank with 643 branches. Following the merger, Koc Holding and UniCredito Italiano continued to co-own Koc Financial Services, 82% shareholder of Yapi Kredi.
• Also in 2006, UniCredito Italiano sold 2S Banca, Italy’s No.2 securities custodian to Société Générale SA for Eur 579-million.
• In 2007, UniCredito Italiano settled with the Polish banking regulator’s objection over its control of both Bank Pekao and Bank BPH and agreed to sell 200 of Bank BPH’s 480 branches, as well as the brand Bank BPH itself to GE Money for Eur 625-million (USD $893-million). GE Money is the financial services division of General Electric Co.
• Also in 2007, UniCredito Italiano acquired Capitalia SpA Eur 21.83-billion (USD $29.47-billion). The combined Italian giant will have 9,000 branches around the world with 40 million clients. It will become the No. 2 bank in Italy and in Germany, as well as the No. 1 bank in Austria and in Central and Eastern Europe. Capitalia is the parent company of Banca di Roma, Banco di Sicilia, Bipop-Carire and MCC (MedioCredito Centrale).
• Also in 2007, UniCredito Italiano took full control of International Moscow Bank by acquiring the remaining 9.97% of International Moscow Bank that it didn’t yet own for Eur 171-million (USD $229-million).
• Also in 2007, UniCredito Italiano's Vienna-based Bank Austria Creditanstalt AG unit agreed to buy at least 85% of Kazakhstan's No. 5 bank AO ATF Bank for Eur 1.7-billion (USD $2.27-billion). Almaty-based ATF Bank had an 11.8% market share in Kazakhstan and operated 110 branches.
• Also in 2007, UniCredito Italiano’s Bank Austria Creditanstalt unit bought Ukraine's Ukrsotsbank (USB) for Eur 1.61-billion (USD $2.2-billion). USB operated 497 branches.
• In 2008, UniCredito Italiano formally changed its name to UniCredit SpA.
• Also in 2008, in accordance with an agreement with Italy's anti-monopoly authority in the UniCredit-Capitalia merger, UniCredit sold 184 branches and their accounts and assets to 12 rival banks for Eur 747-million (USD $1.16-billion). The major acquiring banks were Banca Popolare di Milano, Credito Emiliano, Banca Carige, Banca Popolare dell'Emilia Romagna and Banca Popolare dell'Etruria e del Lazio.
• In January 2016, UniCredit agreed to sell (transfer) its Ukrainian subsidiary PJSC Ukrsotsbank to Luxembourg-based, privately-held ABH Holdings (Alfa Bank Group) in exchange for a 9.9%-stake of ABH Holdings. ABH owns several banks in a few Eastern European countries. Ukraine's economy has been in tatters since its military conflicts with Russia over Crimea.
• In July 2016, UniCredit sold a 10% stake in its Polish subsidiary Bank Pekao for EUR 749-million (USD $830-million, PLN 3.3-billion). Following the sale, UniCredit still holds a 40.1% stake in the Polish bank. Italy's banking sector has been battered by the 2008 global credit crisis and the sale is part of the strategy to bolster the Italian bank's capital ratio
• In July and October 2016, UniCredit sold a total of 30% of FinecoBank SpA for EUR 880-million (USD $969-million). Following the sale, UniCredit's stake in FinecoBank was reduced to 35% from 65%. UniCredit inherited the direct bank when it took over Capitalia.
• In December 2016, UniCredit fully divested its remaining 32.8% stake in Polish bank Bank Pekao to Polish insurer PZU and a Polish development fund for PLN 10.6-billion (EUR 2.57-billion). The sale boosted ailing UniCredit's capital and at the same time, returned a major Polish bank to Polish control, which had been a new Polish government policy for some time.
• Later in December 2016, UniCredit also sold its Pioneer Investment subsidiary to France Amundi Asset Management for EUR 3.545-billion (USD $3.72-billion). Pioneer Investments had EUR 222-billion of assets under management. Amundi is on the Paris Stock Exchange but majority-owned by French bank Crédit Agricole.
• In July 2021, UniCredit announced that it was in talks to acquire the 64% stake of ailing Italian rival Banca Monte dei Paschi di Siena (MPS) from the Italian government, on the condition that the Italian state take up the liability of MPS' bad loans. However. talks ended in October 2021, when the Italian Treasury valued the components of MPS selected by UniCredit to be worth between EUR 3.6-billion and 4.8-billion, but UniCredit was only offering EUR 1.3-billion.
• In September 2024, UniCredit acquired a 9% equity stake in Germany's Commerzbank, a 4.5% stake from the German government and 4.5% from public shareholders. Shortly after that, UniCredit disclosed that through the use of derivatives, it controlled a potential 21% economic stake in the German bank, skirting the regulatory approval normally required when controlling more than a 9.9% interest in a German financial institution. UniCredit was seeking approval from the authorities to buy up to 29.9% of Commerzbank. German law requires a full mandatory takeover offer be made when ownership surpasses the 30% threshold. Key ownership thresholds, including 10%, 20%, 30%, and 50%, all require approval from the ECB. However, German Chancellor Olaf Scholz and top Commerzbank executives have come out expressing strong opposition to UniCredit's takeover proposal to create a massive cross-border European bank as "an unfriendly attack."
• In November 2024, UniCredit offered to take over Banco BPM for EUR 10.1-billion (USD $10.6-billion) in stock. In terms of assets, UniCredit is about four times as large as Banco BPM. However, as of mid-2025, it was believed that the chance of UniCredit's success in pursuing Banco BPM was low.

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Singapore Bank Mergers & Acquisitions (DBS Group Holdings)

A DBS bank branch in Hong Kong.  Hong Kong is currently DBS' biggest market outside of Singapore.

DBS Group Holdings Ltd.

The Development Bank of Singapore (DBS) was established in 1968 by the government to nurture the young island nation’s fledgling industries. The idea to establish such a state-owned economic development bank was actually recommended by a UN report commissioned by the Singaporean government.

Financial assistance offered by DBS included ordinary commercial loans, equity participation (i.e. merchant banking) as well as loan guarantees.  During the 1970s, DBS also began to engage in retail banking operations.  DBS began to seriously expand outside of Singapore in the 1990s and hope to establish itself in neighbouring countries such as Indonesia, Thailand, Hong Kong and the Philippines.

In 1999, the Singapore government removed restrictions of foreign shareholdings on Singapore-incorporated banks. DBS promptly eliminated the distinction between its “local” shares and “foreign” shares to allow foreign investors freer access to DBS shares.  For many years, DBS had been indirectly, majority-owned by the Singaporean government, but by 2014, over 70% of DBS is now owned by the public, with the Singaporean government retaining the rest.

Recent transaction(s):

• In 1997, DBS established a subsidiary in Indonesia.  Due to tight control by Indonesia on foreign banks, DBS only had three branches in Indonesia by 2004.
• In 1998, DBS bought POSbank (formerly the Post Office Savings Bank) for SGD $1.6-billion, gaining significant market share.
• In 1998, during the Asian financial crisis that began in Thailand, DBS subscribed to a new share issue of the ailing Thai Danu Bank for THB 6-billion and gained a 50.3% stake. 
• In 1998, DBS bought 60% of the Philippines’ Bank of Southeast Asia for an immaterial amount.  The bank was renamed DBS Philippines.
• In 1999, DBS acquired a 7.4% stake in the Philippines’ Far East Bank & Trust Company, which was being merged into the Bank of the Philippine Islands (BPI).  Following the merger, DBS’s stake in BPI was 2.4%.
• Later in 1999, DBS bought a further 19.7% stake in the Bank of the Philippine Islands (BPI) for SGD $1.2-billion.  The purchase was part of DBS’s strategy to make Singapore, Thailand, Indonesia, Hong Kong and the Philippines its core markets.
• Also in 1999, DBS bought Hong Kong's Kwong On Bank from several shareholders that included Japan's Fuji Bank, for SGD $879-million.  Kwong On had 32 branches in Hong Kong.
• In 2000, DBS bought out the 15% stake in PT Bank DBS Buana from joint-venture partner PT Bank Buana. DBS had several years earlier already acquired 85% of PT Mitsubishi Buana Bank from Japan’s Mitsubishi Bank.  PT Bank DBS Buana was renamed PT Bank DBS Indonesia.
• In 2001, DBS acquired 59.5% of Singapore stockbroker Vickers Ballas Holdings for SGD $444-million.
• In 2001, DBS acquired 87.3% of Hong Kong's Dao Heng Bank (as well as Dao Heng’s local subsidiary Oversea Trust Bank) for HKD $41.9-billion (USD $5.40-billion) from its Malaysian parent Guoco Group and from the public shareholders. Dao Heng operated 70 branches and 80 ATMs.  Initially known as DBS Dao Heng Bank, the Hong Kong operations were re-branded as DBS Bank (Hong Kong) subsequently.
• In 2001, DBS sold its tiny DBS Philippines (chiefy the former Bank of Southeast Asia) to the Bank of The Philippine Islands (BPI) for SGD $55-million (PHP 1.6-billion) in cash. DBS had held 21% of the BPI since 1999.
• In 2001, DBS made a hostile offer for Singapore rival Overseas Union Bank for SGD $9.44-billion. However, United Overseas Bank subsequently won Overseas Union Bank with a higher, SGD $10.2-billion and DBS withdrew its offer.
• In 2002, DBS acquired the remaining 12.7% of DBS Dao Heng Bank for HKD $904-million (SGD $211-million).  Following the purchase, DBS Dao Heng became a wholly-owned subsidiary of DBS.
• In 2004, DBS Thai Danu Bank agreed to a three-way merger with the Industrial Finance Corp. of Thailand, and the much larger Thai Military Bank, creating the 6^th largest bank in Thailand with 426 branches and 953 ATMs.  Prior to the merger, DBS Thai Danu had 62 branches in Thailand. Following the merger, DBS would hold 16.1% of the enlarged Thai Military Bank.
• In 2007, another banking crisis in Thailand necessitated further re-capitalization of the Thai Military Bank, which private investors, including DBS, refused to subscribe to, due to poor governance at the Thai bank and hostility of the Thai government towards Singaporean companies.  As a result, DBS’ stake in Thai Military Bank was diluted to 7.2% from 16.1%.
• In 2008, DBS received TWD 44.5-billion (USD $1.4-billion) in subsidy from the Taiwan government to take over the operations of failed Bowa Commercial Bank. Bowa Commercial Bank operated 42 branches in Taiwan.
• In April 2012, Singapore state-owned Temasek and DBS reached an agreement under which Temasek would transfer its 67.4% stake in Indonesia’s PT Bank Danamon to DBS in return for a 10.9% stake in DBS. Temasek already owned a 29.5% stake in DBS before the proposed transaction.  DBS also offered to buy out the 32.6% minority share holdings of Bank Danamon, which valued the entire bank at IDR 66.4-trillion (SGD $9.1-billion, USD $7.2-billion).  PT Bank Danamon operated about 3,000 branches in Indonesia.  However, the deal died in 2013 following failure to gain approval from the Indonesian government.
• In October 2012, DBS sold a 10.4% stake of the 20.3% interest it held in the Bank of The Philippine Islands (BPI) for SGD $757-million (PHP 25.6-billion).
• In July 2013, following over a year of inaction from the Indonesian central bank to grant approval on the sale of PT Bank Danamon by Temasek to DBS, the latter announced that the deal had officially died.  Indonesia was averse to allowing competitive and powerful foreign banks to gain significant market share in the backward domestic banking system. The news dealt a major blow to DBS’s long-term strategy to make Indonesia one of its core markets. Without gaining Bank Danamon, DBS' operations in Indonesia numbered only 39 branches from its DBS Bank Buana subsidiary.
• In November 2013, DBS sold its remaining 9.9% stake in BPI for SGD $850-million (USD $681-million, PHP 29.6-billion). With the sale, DBS abandoned an earlier plan to make the Philippines a core market.
• In March 2014, DBS bought Société Générale’s Asian private banking business for USD $220-million.  The business purchased had USD $12.6-billion of assets under management.
• In October 2016, DBS bought Australian bank ANZ's small retail and wealth management businesses in Singapore, Hong Kong, China, Taiwan and Indonesia for SGD $110-million over book value. The purchase would add SGD $17-billion of deposits, SGD $11-billion of loans and SGD $23-billion of assets under management to DBS.

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