UK banking stocks were subdued following what looks to be the first stirrings of consolidation in the sector with Italy’s UniCredit bidding €10.1 billion in an all-stock bid to acquire rival Banco BPM.
In London, the news was met with a collective 'meh' with stocks such as Lloyds Banking Group PLC (LSE:LLOY), Barclays PLC (LSE:BARC) and NatWest Group PLC (LSE:NWG) all in positive territory - but only just.
Back on the Continent, if UniCredit is successful, its deal would create Europe’s third-largest lender by market value.
The bid comes months after UniCredit, led by CEO Andrea Orcel, disclosed a stake in Germany’s Commerzbank.