Italian Banking Consolidation Heats Up
Intesa Sanpaolo Launches €30.6 Billion Bid for MPS, Aiming to Be Eurozone's Second-Largest Bank
Anonymous
Italy’s Intesa Sanpaolo has launched a counteroffer for Monte dei Paschi di Siena, proposing about €30.6 billion (around $35 billion) in a cash-and-share deal that includes 16 new Intesa shares plus €1 cash for every 10 MPS shares and a roughly 12.5% premium over MPS’ recent closing price. The bid is aimed at strengthening Intesa’s European leadership and would, if completed, create the eurozone’s second-largest listed bank by market value, with projected scale including about €1.7 trillion in customer financial assets and service for more than 27 million clients. Intesa’s move effectively blocks MPS from negotiating with Banco BPM unless shareholders approve, after Banco BPM’s board unanimously backed a “merger of equals” proposal for MPS worth about €50 billion. To address potential antitrust concerns, Intesa has agreed with insurer Unipol to divest a banking business covering roughly half of MPS’ retail network (about 635 branches) and preserve the MPS retail banking brand as part of the remedy package. MPS, privatized after a 2017 government rescue and known as the world’s oldest bank, has become central to a broader Italian consolidation push that includes recent moves involving Mediobanca and stakes in Generali. Trading reacted with the bidding battle pulling down Intesa and Banco BPM shares while MPS stock edged up.
Key Points
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In its statement, Intesa said the transaction’s strategic objective is “to further strengthen the European leadership of Intesa Sanpaolo in wealth management, protection and advisory and the sustainability of value creation for all stakeholders.”
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Intesa projected specific post-merger financial targets: the combined group would have a market capitalisation of about €126bn and a net income objective of €16bn in 2029.
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Timing: Intesa said the deal was expected to close by December 2026.
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Banco BPM has not disclosed details of the proposed “merger of equals” structure, but it indicated both banks would “maintain equal influence in the new entity.”
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Intesa also outlined what it would keep inside the acquired perimeter for its integration plan for MPS: it said it would retain Mediobanca and its brand, alongside roughly 625 MPS branches and a limited portion of MPS central structures—together accounting for about 80% of MPS and Mediobanca’s 2025 net income.
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