By Giulia Petroni

Intesa Sanpaolo SpA said late on Thursday that the Italian competition authority has authorized its takeover offer for smaller rival Unione di Banche Italiane SpA.

"This is a fundamental milestone as it guarantees the regularity correctness of the operation to all UBI shareholders who adhere to the offer," said Intesa's Chief Executive Carlo Messina. "UBI shareholders now have all of the essential information needed to evaluate our offer and make their choice."

Under the deal, Intesa has to divest more than 500 branches to address antitrust concerns. The Italian bank said it would comply with all the provisions set by the antitrust authority.

Intesa's offer started last week and will run until July 28.

In February, Intesa launched a surprise all-share takeover bid for UBI, valued at the time at $5.3 billion. The combination would create Italy's largest bank.

The board of UBI has previously rejected the offer, saying it didn't reflect the bank's value and that it wouldn't be beneficial for its shareholders.

Write to Giulia Petroni at giulia.petroni@wsj.com

(END) Dow Jones Newswires

July 17, 2020 01:47 ET (05:47 GMT)

Copyright (c) 2020 Dow Jones & Company, Inc.
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