Unicredito Italiano is in advanced talks to purchase Germany’s HVB Group in a reported $20 billion, all-stock transaction, the Wall Street Journal is reporting in its Friday edition.
The deal is by no means final, as the Journal reports key issues are still being negotiated between the two firms, such as HVB’s exact price. Reportedly, Unicredito will also have to agree to an acceptable takeover premium without breaching its own strict criteria for return on investment. Further, HVB is likely to demand a share of the governance of the combined group in return for giving up its independence.
“Cross-border deals, tough to pull off in any event, can be especially so when language and culture gaps are wide,” the Journal says.
Should the deal go through, it would mark the largest cross-border deal in Continental European banking history.