A significant development in Italy’s financial sector unfolded when Banca CF+, a specialty lender backed by Elliott Management, announced the launch of a public offer to acquire its rival Banca Sistema in a deal at €145 million ($170 million). The announcement, which was made on Monday, was interpreted as part of a wider trend of consolidation reshaping the Italian banking landscape, where institutions have been seeking greater scale and efficiency to survive and thrive in a competitive and regulated environment.
The bid, which was structured as a cash-and-share transaction, was understood to have been extended at a discount to Banca Sistema’s most recent market valuation. According to market sources, shares of Banca Sistema had closed at €1.96 on the previous Friday, while the offer from Banca CF+ was priced at €1.80 per share. The pricing of the offer appeared to have triggered a sharp reaction on the markets, with Banca Sistema shares plunging by 10.8% on Monday, causing trading to be automatically suspended.
It was reported that Banca CF+ had already secured a significant strategic advantage by obtaining the commitment of Gianluca Garbi—Banca Sistema’s founder, current CEO, and principal shareholder. Garbi, who holds a 24.9% stake in the bank, had reportedly agreed to tender his shares in support of the merger, which is expected to lead to the full integration of the two institutions. In the event that the offer is successful, Banca CF+ is expected to be merged into Banca Sistema, with the resulting entity maintaining its stock market listing.
The proposed consolidation is being viewed by analysts and market participants as both timely and necessary, reflecting broader pressures across Italy’s banking sector to reduce fragmentation. According to industry experts, the pursuit of scale and operational efficiency has become a strategic imperative, particularly for banks operating in niche or specialised segments. The trend has been reinforced by ongoing regulatory scrutiny, technological transformation, and evolving customer expectations.
A Milan-based trader noted that the announcement of the offer may have encouraged some investors to capitalise on recent gains, as Banca Sistema’s stock had been trading at its highest level in three years. These investors were believed to have adopted the view that they could reinvest in the new merged entity at a later stage, should the transaction proceed as expected.
Banca Sistema is known for its specialisation in factoring—a form of financing in which it purchases receivables from companies, particularly those owed by public administrations. It also provides consumer loans backed by a portion of a borrower’s salary, targeting individuals with stable incomes. The company has carved out a notable presence in this specialised space, which often requires deep expertise in public sector financing and risk management.
Banca CF+, on the other hand, has its origins in Credito Fondiario, an institution that underwent significant transformation following investment by the U.S.-based Elliott Management. Elliott first took a stake in 2015, and by 2018 had raised its shareholding as it focused on building a robust business in distressed debt and non-performing loans—areas that were booming during a period marked by Italy’s banking crisis and the proliferation of bad loans.
In 2022, a strategic reorganisation was undertaken by the group, resulting in the separation of the banking and loan recovery businesses. Banca CF+ emerged as the newly branded banking arm, while the debt recovery operations were spun off under the name Gardant. That unit, in turn, merged with doValue—a bad loan servicing firm backed by Fortress Investment Group—consolidating its position in Italy’s non-performing loan sector.
The latest acquisition bid has been portrayed as part of a broader strategic move by Banca CF+ to bolster its footprint in specialty finance and enhance its operational scale. Iacopo De Francisco, CEO of Banca CF+, was quoted as stating that the Italian banking sector was experiencing a notable wave of consolidation, and that even among specialised lenders, there was growing recognition of the need for larger, more efficient players capable of delivering sustained value.
While Banca Sistema has not yet publicly responded to the offer, it is expected that the coming weeks will be marked by further discussions between the two parties, regulatory assessments, and market reactions. Should the transaction proceed as planned, the combined entity could emerge as a more formidable player in the Italian specialty lending space—better positioned to navigate economic uncertainties, meet regulatory requirements, and compete in a transforming financial ecosystem.
As consolidation efforts intensify across Italy’s financial sector, the proposed merger between Banca CF+ and Banca Sistema is being closely watched as a potential model for strategic alignment among mid-sized and niche financial institutions, many of which face mounting pressures to adapt or combine in an increasingly complex and competitive market.
