Rome: The European Commission announced that the case concerning Italy’s potential misuse of its golden powers in relation to UniCredit’s attempted acquisition of Banco BPM remains unresolved. This follows UniCredit’s recent decision to retract its offer to take over Banco BPM, Italy’s second-largest bank.

According to Ansa News Agency, earlier this month, the Commission communicated its concerns to the Italian government through a letter. The letter highlighted reservations about the application of Italy’s ‘golden powers’, suggesting it “could constitute a violation of Article 21 of the EU Merger Regulation and other provisions of EU law.” The Italian government employed these powers through a decree to impose conditions related to UniCredit’s activities in Russia, loan-to-deposit ratios, and investments in Anima Holding, a fund manager recently acquired by BPM, to approve the hostile takeover bid.

European Commission spokesman Thomas Regnier stated, “We take note of the decision not to proceed with UniCredit’s offer for Banco BPM.” He further mentioned that the decree remains active, and the letter sent to Italy was specifically regarding this decree. “So since the decree remains on the table, our talks with the Italian authorities will also remain valid,” Regnier added.

The European Commission is awaiting a response to the letter sent to Italy, with Regnier emphasizing the importance of these communications. “Our exchanges with the Italians are good and we continue on this basis,” he concluded.