Rome Deal Creates World's 5th-Largest Bank

By Peter Fearon,  Newser Staff
Posted May 21, 2007 5:23 AM CDT
Rome Deal Creates World's 5th-Largest Bank
int statement. (AP Photo/Plinio Lepri)   (Associated Press)

(Newser) – Italian lenders UniCredit and Capitalia yesterday inked a $29.7 billion deal to create a bank with the world's fifth (and Europe's second) largest market cap. The hurried Rome merger indicates, according to the Wall Street Journal, a rush to consolidate Europe's banking sector, but also the persistent challenges to cross-border deals within the EU.

Capitalia resisted proposals from banks in Spain and Holland, while UniCredit abandoned negotiations with France's Société Générale because of political opposition across the Alps. "We are still trying to create a common European market," a senior UniCredit executive conceded. "Cross border deals are always difficult." (Read more European Union stories.)

We use cookies. By Clicking "OK" or any content on this site, you agree to allow cookies to be placed. Read more in our privacy policy.
Get the news faster.
Tap to install our app.
X
Install the Newser News app
in two easy steps:
1. Tap in your navigation bar.
2. Tap to Add to Home Screen.

X