Intesa Sanpaolo has launched a 30.6 billion euro bid for Monte dei Paschi di Siena (MPS), a move that could make it Europe’s second-largest bank by market value. The offer, part of a broader merger plan with Unipol, aims to consolidate Italy’s banking sector. The Italian government still holds a small stake in MPS through the Economy Ministry, adding complexity to the deal.
Unipol, which owns Bper, plans to merge its Siena branches with MPS, creating a new entity named Banca Monte dei Paschi. This would involve a 2.5 billion euro capital increase at Unipol Assicurazioni to fund the transaction. The merged group would inherit 635 MPS branches, 55 billion euros in direct funding, and around 2 million customers.
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If completed, the deal would position Intesa Sanpaolo as a major European banking force. The transaction faces hurdles, including a “passivity rule” that blocks competing offers from Banco BPM until December 2026. BPM had previously proposed a merger of equals with MPS, a plan backed by Crédit Agricole, which holds a 20.1% stake in the bank.
“Winning over a partner with a letter alone is unlikely,” said Unipol chairman Carlo Cimbri, dismissing BPM’s proposal during a Milan press conference. Intesa’s offer, backed by the passivity rule, limits alternative bids for MPS. The deal also follows MPS’s December acquisition of Mediobanca, which controls parts of Generali, a move that involved competing bids from UniCredit and BPM.
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Intesa plans to raise 5.7 billion euros through a shareholder meeting in September to fund the merger. This would allow the bank to take over MPS, Mediobanca, and their operations. Unipol will also seek approval for a 2.5 billion euro share increase to support the merger. The combined entity aims to strengthen its role in supporting Italy’s real economy.
The merger is expected to finalize by December, though challenges remain. Bper’s integration with the new MPS entity would require another shareholder vote. The deal’s success hinges on regulatory approval and shareholder support, with the Italian government’s stake in MPS adding a layer of political consideration.
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The transaction could reshape Italy’s banking setting, ending a duopoly between Intesa Sanpaolo and UniCredit. However, the path is unclear. Corriere della Sera reported that Intesa’s plan includes taking over MPS’s legal structure, a step that could face legal or regulatory pushback.
The focus remains on shareholder votes and the timeline. The merged group’s ability to compete on a European scale depends on integrating MPS’s operations with Intesa’s existing network. The deal’s long-term impact on Italy’s financial sector remains to be seen, but the immediate goal is closing the transaction by year’s end.