UniCredit Gets EU Nod for BPM Bid But Rome’s Limits Raise Doubts

UniCredit SpA’s bid for Banco BPM SpA got a green light from the European Union, but strict conditions imposed by Italy remain in place, casting doubt over the deal.

The European Commission “approves” the acquisition, it said in a statement on Thursday. The nod is contingent on a commitment from UniCredit to get rid of 209 branches “located in problematic overlap local areas across Italy” to address competition concerns, it said.

Though the decision from Brussels helps UniCredit Chief Executive Officer Andrea Orcel clear one deal obstacle, he’s facing a bigger challenge at home. The Italian government has ...