ING Groep recently met with Italy's Banca Popolare di Sondrio as part of its strategy to grow in Europe through acquisitions, according to a source familiar with the situation. The discussions are still in the early stages and may not lead to a formal offer from the Dutch bank.
A potential bid from ING would compete with BPER Banca's recent all-share offer of 4.3 billion euros for Sondrio, marking the latest development in Italy's banking sector consolidation. Both BPER and Sondrio have Unipol, Italy's second-largest insurer, as their primary shareholder, holding nearly 20% of each institution.
Unipol Chairman Carlo Cimbri indicated that a foreign bank is evaluating a possible bid for Sondrio to challenge BPER’s proposal. Cimbri alluded to ING as a potential interest by referencing the color of a journalist's tie, which was orange.
Sondrio, based in the affluent Valtellina valley northeast of Milan, has enlisted Bank of America and Morgan Stanley as advisers against BPER's bid. These banks are engaging with potential bidders, according to the anonymous source.
In an effort to deter BPER, Sondrio plans to return 1.5 billion euros to shareholders from 2025 to 2027, effectively doubling the payouts from the previous three years. BPER described its interest in Sondrio as a defensive response to the ongoing consolidation in the banking sector.
In February, ING expressed its intention to explore acquisition opportunities in major European markets, including Italy, Spain, and Germany, to enhance its market presence. The Dutch lender has operated as a retail bank in Italy since 2001 and is recognized as a leading digital bank, serving 1.275 million clients. Currently, ING is offering a 4% return for one year on new accounts opened before the end of May to grow its deposit base.