Banco BPM Invites MPS to €50 Billion Merger Talks as Intesa, BPER Weigh Bids
Updated
Updated · Reuters · Jun 7
Banco BPM Invites MPS to €50 Billion Merger Talks as Intesa, BPER Weigh Bids
3 articles · Updated · Reuters · Jun 7
Summary
Banco BPM said it will ask Monte dei Paschi di Siena to discuss a merger of equals that would create a bank worth more than €50 billion and overtake UniCredit as Italy's No. 2 lender.
€1.1 billion in annual pre-tax benefits would lift earnings per share by more than 10%, BPM said, adding that its board unanimously backed the approach and that the deal would safeguard both banks.
MPS has become a takeover focal point after last year's Mediobanca acquisition, with sources saying Intesa Sanpaolo and BPER are also considering moves; Intesa is interested only in parts of MPS because of antitrust limits.
Monday's MPS board meeting is the first chance to respond formally, in a consolidation wave reshaping Italian banking since the state's 2023-24 reprivatisation of MPS.
Can a merger with Italy's oldest bank, MPS, deliver its promised value or just inherit the bank's historical problems?
With UniCredit's past bid foiled, will Italy's new banking giant be formed or will a rival bank intervene?
Monte dei Paschi di Siena at the Center of Italy’s 2026 Banking Consolidation: Competing Mega-Mergers and Sector Impact
Overview
Monte dei Paschi di Siena (MPS), after being bailed out by the Italian state in 2017 and reprivatized by 2024, has become a central player in Italy’s banking sector. Its acquisition of Mediobanca in 2025 made MPS the largest investor in insurer Generali, further strengthening its financial influence. This move set the stage for a new wave of mergers and acquisitions, with MPS at the heart of competing bids and strategic proposals. As the sector enters a 'second wave of dealmaking,' MPS’s transformation highlights the drive for consolidation and the reshaping of Italy’s banking landscape.