Orcel’s Dealmaking Ambitions for UniCredit Hit Political Reality

Andrea Orcel’s plans to remake UniCredit SpA’s footprint in Europe suffered another bruising encounter with the continent’s political realities this week.

UniCredit said on Tuesday that it is shelving its offer — at least for now — to buy smaller Italian rival Banco BPM SpA, after eight months of clashes with Giorgia Meloni’s administration. The announcement was welcomed in Rome, as the government has sought to keep Banco BPM independent by imposing requirements on the deal that made it de facto impossible.

It is the second time in under a year that a political backlash has curbed ...