UniCredit SpA is weighing options including creating a holding company in Germany to control a chunk of its business to lower funding costs and help mitigate effects should a crisis happen in its home country, insiders told Bloomberg News.
Under the plan, the Italian banking group would move some or all of its non-Italian assets into the holding company, the sources said. Another option would have the bank list up to 30% of the holding company, which could also be formed in another location under a third option.
Although the plan is yet to be finalized, UniCredit has reportedly informed the European Central Bank about its plans, which could be announced during its investor day in December.
CEO Jean Pierre Mustier has been looking to expand the bank's international operations after cleaning up its balance sheet, according to the Oct. 14 report. However, he previously said the group would look to reduce its exposure between the various subsidiaries.
UniCredit already has a presence in Germany through Munich-based UniCredit Bank AG, or Hypovereinsbank.