ING Eyes Italian Expansion with Potential Sondrio Bid Amid Banking Consolidation

Dutch banking giant ING Groep (AS:INGA) has held preliminary talks with Italy’s Banca Popolare di Sondrio (BIT:BPSI) as part of its strategy to expand through acquisitions in Europe, according to a source familiar with the matter. While the discussions remain in early stages and may not result in a formal offer, they signal ING’s growing interest in the Italian banking sector.

A potential bid from ING could challenge BPER Banca’s existing €4.3 billion ($4.7 billion) all-share offer for Sondrio, announced in February. Both BPER and Sondrio count Unipol (BIT:UNPI), Italy’s second-largest insurer, as a major shareholder, with nearly 20% ownership in each. Unipol Chairman Carlo Cimbri hinted at ING's involvement, referencing the color orange—a nod to ING’s brand—during a recent event.

Sondrio, headquartered in Italy’s affluent Valtellina valley near Milan, has brought in Bank of America and Morgan Stanley as advisers to defend against BPER’s bid. These advisers are also in talks with potential rival bidders, according to the anonymous source.

To strengthen its position, Sondrio has pledged to return €1.5 billion to shareholders between 2025 and 2027, doubling its previous payout and aiming to make its stock more attractive.

BPER has characterized its offer as a defensive strategy amid ongoing consolidation in Italy’s banking sector. ING, which has operated as a retail bank in Italy since 2001 and currently serves 1.275 million clients, reaffirmed in February its ambition to grow through acquisitions in key European markets such as Italy, Spain, and Germany. The bank is actively expanding its Italian deposit base by offering a 4% return on new accounts opened before the end of May.