Key facts
- Intesa Sanpaolo launched an unsolicited €30.6 billion bid for Monte dei Paschi di Siena (MPS).
- The proposed merger would create the Eurozone's second-largest banking group.
- Intesa agreed to sell 635 MPS branches and the MPS brand to BPER Banca if the bid is successful.
- The offer represents a 12.5% premium over MPS's closing share price.
- Banco BPM had previously proposed a merger with MPS.
Intesa Sanpaolo has launched an unsolicited €30.6 billion ($35 billion) cash-and-share bid to acquire rival lender Monte dei Paschi di Siena (MPS), potentially reshaping Italy's banking sector and spurring further consolidation. This offer complicates earlier merger discussions between MPS and Banco BPM. To mitigate antitrust concerns, Intesa has agreed to sell 635 MPS branches and the MPS brand to BPER Banca, which is backed by insurer Unipol, should the bid succeed. This strategy mirrors Intesa's acquisition of UBI Banca in 2020. The combined Intesa-MPS entity is projected to become the Eurozone's second-largest banking group, trailing only Spain's Santander, with a target net income of €16 billion by 2029, up from a combined €13.6 billion last year. MPS, which underwent a state bailout in 2017 and was reprivatized recently, has been a key focus for consolidation. Intesa's offer includes a 12.5% premium over MPS's Friday closing share price, valuing the bank at €30.6 billion against its market value of €27.4 billion. Intesa CEO Carlo Messina expressed confidence in securing investor support, noting good relations with key shareholders Delfin and Francesco Gaetano Caltagirone.