Intesa counters Banco BPM’s proposal with Monte dei Paschi bid

Intesa Sanpaolo has enactment guardant a cash-and-share connection worthy €30.6bn ($35bn) for Monte dei Paschi di Siena aft Banco BPM’s merger of equals connection for MPS.

Intesa said that, if completed, the woody would make the euro zone’s second-largest listed banking radical by marketplace worth aft Santander.

The combined radical would person a marketplace capitalisation of €126bn and a nett income nonsubjective of €16bn successful 2029.

To code imaginable antitrust issues, Intesa has agreed with insurer Unipol to dispose of a banking concern including 635 MPS branches, oregon astir fractional of the lender’s retail network, on with the MPS brand, should the acquisition succeed.

The statement is intended to trim contention concerns and sphere MPS arsenic a retail banking name.

MPS, which was rescued by the Italian authorities successful 2017 and returned to backstage ownership successful 2023-2024, has moved to the centre of Italy’s latest banking consolidation wave.

Earlie this year, Monte dei Paschi committee approved a afloat merger with Mediobanca, which volition effect successful Mediobanca being delisted from the Milan banal exchange.

Last twelvemonth it acquired Mediobanca, becoming the biggest shareholder successful Generali, Italy’s largest insurer. Those holdings are among the cardinal assets sought by Intesa.

On Sunday, Banco BPM said its committee had unanimously approved a program to unfastened talks with MPS implicit a imaginable €50bn combination.

A merger betwixt Banco BPM and MPS would signifier Italy’s second-largest bank, up of UniCredit, which retracted its bid for Banco BPM owed to unmet conditions related to the aureate powerfulness authorisation past year.

Intesa said it would support Mediobanca and its brand, astir 625 MPS branches and a constricted information of MPS cardinal structures, unneurotic accounting for astir 80% of MPS and Mediobanca’s 2025 nett income.

The slope said the merged radical would clasp astir €1,700bn successful lawsuit fiscal assets, including much than €250bn from the retained MPS perimeter, and service much than 27 cardinal customers, astir 20 cardinal of them successful Italy.

Banco BPM, outlining its ain proposal, said a operation with MPS would nutrient a radical with a marketplace capitalisation of much than €50bn.

It said the transaction would grow the strategical options linked to MPS’s holding successful Assicurazioni Generali and would effect successful a pro-forma CET1 ratio of astir 15%, worth instauration of astatine slightest €5.5bn and net per stock accretion of much than 10%.

"Intesa counters Banco BPM’s connection with Monte dei Paschi bid" was primitively created and published by Retail Banker International, a GlobalData owned brand.