Banco BPM announced its intention to engage Banca Monte dei Paschi di Siena (MPS) in discussions about a potential merger that would establish a banking group worth around €50 billion ($58 billion) on the Milan stock exchange. This merger, which has been a topic of speculation, would position the new entity as the second-largest bank in Italy, surpassing UniCredit.
Banco BPM anticipates that the merger could lead to a more than 10% increase in earnings per share, supported by annual pre-tax benefits exceeding €1.1 billion.
The board of Banco BPM, which includes representatives from its main shareholder, Credit Agricole, has unanimously approved this initiative to propose a 'merger of equals' to MPS, although specific details regarding the structure of the deal have not been disclosed. MPS has not yet commented on the proposal, but a board meeting is scheduled for Monday, providing an opportunity for discussion.
Banco BPM's interest in MPS follows its investment in the bank in November 2024, after the Italian government completed MPS's reprivatization. This potential merger could signal a renewed wave of mergers and acquisitions in the Italian banking sector, following a period of increased activity last year