Intrum AB (publ) (OM:INTRUM) is in exclusive talks to buy the bad loan arm of Cerved Group S.p.A. (BIT:CERV), the company said on February 16, 2020, signaling the first major consolidation move in an industry where growth is easing after a boom. Intrum had no comment. In December Intrum Italy submitted a non-binding cash bid to buy the bad loan business Cerved had put up for sale after the early termination of a key contract with Monte dei Paschi di Siena and a failed attempt to expand further in Greece.

A source familiar with the matter said Intrum's initial offer had valued the unit at €450 million, a price tag that was later raised ahead of a binding bid this month. Analysts had valued the division at up to €480 million - €490 million. Intrum faced competition from Credito Fondiario S.p.A. Credito Fondiario submitted an alternative proposal to Cerved's board, offering to merge its business into Cerved's loan management unit with a view to eventually hiving off the division an list it, two sources have said.

Cerved would have owned 70% of the combined entity, the sources said. Intrum was reported in December 2019 to have submitted a cash offer for the Cerved unit through its Italian arm, Intrum Italy S.P.A.