Banco BPM Proposes Merger Talks with MPS to Create Italy's Second-Largest Bank
Banco BPM invites MPS to $58 billion merger talks to form Italy's second-biggest bank
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Banco BPM has invited Banca Monte dei Paschi di Siena to discuss a merger that could create Italy's second-largest banking group, valued at approximately $58 billion. The merger could enhance earnings per share by over 10% and follows recent M&A activity in the Italian banking sector.
- 01The proposed merger would create a banking group valued at approximately €50 billion ($58 billion).
- 02Banco BPM anticipates a 10% increase in earnings per share due to the merger.
- 03The board of Banco BPM, including representatives from Credit Agricole, unanimously approved the merger discussions.
- 04The merger is described as a 'merger of equals', giving both banks equal representation in the new entity.
- 05Banco BPM became an investor in MPS in November 2024 after the Italian government reprivatized the bank.
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Banco BPM announced its intention to invite Banca Monte dei Paschi di Siena (MPS) for discussions about a potential merger that would result in the formation of Italy's second-largest banking group, surpassing UniCredit. This merger, valued at around €50 billion ($58 billion), is expected to enhance Banco BPM's earnings per share by more than 10%, driven by anticipated annual pre-tax benefits exceeding €1.1 billion. The board of Banco BPM, which includes members from its main shareholder, Credit Agricole, has unanimously approved the move to express interest in a 'merger of equals'. While MPS has not yet commented on the proposal, it has a board meeting scheduled for Monday to discuss the matter. This proposed merger follows a period of increased M&A activity in the Italian banking sector, which saw Banco BPM previously become an investor in MPS in November 2024, after the Italian government completed the bank's reprivatization. The earlier takeover bid by UniCredit for Banco BPM in July 2025 failed, which had temporarily halted Banco BPM's pursuit of alternative M&A opportunities.
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The merger could significantly reshape the Italian banking landscape, enhancing competition and potentially affecting employment and services in the sector.
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