Banking M&A: the acquisition of UBI Banca by Intesa Sanpaolo

The thesis aims to illustrate M&A processes in the banking sector, analyzing the acquisition of UBI Banca by Intesa Sanpaolo. In recent years, macroeconomic, social, regulatory and technological dynamics have led to profound structural changes in the banking segment, with significant repercussions on what will be the future performance of the sector. The first chapter offers an analysis of M&A transactions’ trends and drivers at the global, European, and Italian levels. Through these extraordinary finance transactions, banks can gain numerous advantages such as cost reduction and efficiency improvement, new investment opportunities in digital transformation, increased profitability, and finally they can also help to eliminate excess capacity in the banking system, inherited from the period before the great financial crisis. The second chapter describes the key processes of a M&A transactions, focusing on the role of the players involved and the dynamics of interaction, the due diligence, the main valuation methods used, and the different acquisition methods as crucial elements in the success of a deal. The third chapter presents the main stages of the acquisition of UBI Banca, which allowed Intesa Sanpaolo to consolidate its leadership position in the Italian context, also becoming a big player at the European level. In conclusion, it can be affirmed that in the current historical context characterized by low interest rates and rising inflation, banking M&A can be considered as a real strategic lever to pursue revenue growth and consolidation requirements imposed by the authorities.