UniCredit: Gulf Firms Pursue Purchase of Russian Unit with Italian Backing
Deal News | May 28, 2025 | Zawya
Three United Arab Emirates-based firms, Asas Capital, Mada Capital, and Inweasta, have made a proposal to purchase the Russian operations of Italy's UniCredit at a significant discount. The Italian Treasury, under pressure from the European Central Bank (ECB) and Italy's government, is encouraging the exit of UniCredit from Russia, where it operates a commercial lender. The Italian government has demanded UniCredit leave Russia by early 2026, in line with conditions linked to a buyout offer for Banco BPM. The proposal requires approval from multiple regulatory bodies, including ECB, EU, US, and Russian authorities. Asas Capital focuses on investment and advisory services, while Inweasta assists with regulatory approvals in cross-border transactions. The proposed deal represents a 60% discount to market value and underscores the strategic complexities of Western companies divesting from Russian assets.
Sectors
- Banking
- Private Equity
- Investment Advisory
Geography
- Italy – UniCredit is an Italian banking institution involved in the transaction, and Italian authorities are seeking its withdrawal from Russia.
- United Arab Emirates – The UAE is the base for Asas Capital and Mada Capital, which have proposed the acquisition of UniCredit's Russian business.
- Russia – The business unit being sold is UniCredit's Russian operations, and regulatory approvals in Russia are critical to the transaction.
Industry
- Banking – UniCredit operates as a commercial bank in Russia, and the transaction involves its Russian banking business.
- Private Equity – Entities like Asas Capital and Mada Capital are engaged in private equity operations, which are central to the acquisition proposal.
- Investment Advisory – Inweasta's role in facilitating the transaction, and regulatory navigation, is indicative of the Investment Advisory industry.
Financials
- 60% – Proposed acquisition discount of UniCredit's Russian business relative to market value.
- $639 million – Assets managed by Mada Capital involved in the acquisition proposal.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| UniCredit | Target | Company | An Italian bank aiming to divest its Russian operations. |
| Asas Capital | Bidding Company | Company | A Dubai-based investment firm focusing on capital markets and private equity. |
| Mada Capital | Bidding Company | Company | An investment firm managing about $639 million in assets, focusing on regional markets. |
| Inweasta | Other Company - Advisory and Investment | Company | A firm specializing in cross-border disputes and regulatory approvals. |
| Italian Treasury | Other Company - Government | Government | Italian government department approached for the transaction. |