Italy’s BPER Bank Seals 1-Euro Deal to Buy Troubled Carige

Italian lender BPER Banca SpA agreed to take over ailing competitor Banca Carige SpA, paving the way for a revamp of one of the country’s most problematic banks.

Modena-based BPER will buy the approximately 80% of Carige held by Italy’s interbank fund for the token price of 1 euro ($1.13) while the fund will provide 530 million euros in capital, the bank said in a statement late Monday.

The deal has “strong strategic and industry significance” and will enable BPER to grow in regions in which it currently has a limited footprint, the bank said.

Carige shares rose as ...