As the festive season approaches, the Italian bank looks set to treat itself to a real feast. Andrea Orcel, the bank's CEO, is playing the role of greedy guest, ready to devour his rivals. After taking a bite out of Germany, by increasing its stake in Commerzbank to 21% (with the ambition, who knows, of buying Germany's second-largest bank), UniCredit is not content with this appetizer.

The German sauerkraut, though copious, doesn't seem to be satisfying Andrea Orcel's appetites. He's already back in Italy for the main course: this time, there's no question of settling for a slice of pizza, as UniCredit is aiming for the whole of Banco BPM. An acquisition which, if it goes ahead, will mark a veritable financial banquet for the Italian bank. But beware: too much to eat can lead to indigestion.

Becoming a leading European banking player is an ambitious project, but UniCredit will have to go through several stages before it can break out the champagne. Firstly, Banco BPM will have to accept the offer, and this is far from a foregone conclusion. Secondly, it will have to obtain regulatory approval. The European Central Bank (ECB) must approve UniCredit's acquisition of more than 10% of Commerzbank's capital, as well as the colossal takeover of Banco BPM. Finally, the Italian Competition Authority, and possibly even the European Commission, will also have to give their approval.

If all goes well for UniCredit, the Italian bank could become a true European giant. Its capitalization would rise from 55 to 82 billion euros, surpassing BNP Paribas (62.3 billion euros). However, it would still be a long way from a behemoth like British bank HSBC ($164 billion), and even further from American giants such as JPMorgan and its $703 billion.

UniCredit's grand plans are still simmering on the back burner, with no final decision in sight. The bank will have to bide its time until 2025 to see if these projects will materialize. Until then, the question remains: can UniCredit successfully swallow this ambitious meal, or will its lofty goals prove too much to handle?

Drawing by Amandine Victor for MarketScreener.