The two largest European banks can unite

Italian UniCredit (MI:CREDIT) is planning a merger with the French Bank Societe Generale (PA:VOGN), reports the Financial Times, citing informed sources.

The management of the Italian Bank puts forward the idea of such a transaction for several months, the newspaper writes. No formal proposals have been made yet, but members of the Board of Directors of SocGen are also exploring the possibility of such a combination. Discussion of a possible deal is in the early phase, told the newspaper its sources.

Societe Generale denied the information that the Board of Directors of the Bank is discussing a potential merger of UniCredit. The Italian Bank declined to comment on the possibility of the transaction.

The two largest European banks have complementary business, in particular, UniCredit has leading positions in the markets of Germany and Italy, the French group – in the markets of Central Europe.