Banco BPM invites MPS to $58 billion merger talks to form Italy's second-biggest bank
Banco BPM's Merger Proposal and Its Implications
By Valentina Za and Angelo Amante
Banco BPM's Invitation to MPS
MILAN, June 7 (Reuters) - Italy's Banco BPM said on Sunday it would invite Banca Monte dei Paschi di Siena to discuss a potential tie-up that would create the country's second-biggest banking group, overtaking UniCredit.
Deal Value and Expected Benefits
The long-mooted deal, which UniCredit has sought to block, would create a group worth around €50 billion ($58 billion) on the Milan bourse. Banco BPM estimated earnings per share would rise by more than 10%, driven by annual pre-tax benefits of more than €1.1 billion.
Potential Impact on Italian Banking Sector
The announcement could kick-off a second wave of dealmaking in Italian banking after a burst of M&A activity last year.
Board Decisions and Shareholder Influence
Banco BPM said its board, which includes representatives of France's Credit Agricole, its main shareholder, had unanimously approved a move to express interest to MPS in discussing a "merger of equals".
Deal Structure and Equal Weight
The bank gave no details on deal structure, saying only that it would give both groups equal weight in the combined entity.
Reactions and Next Steps
MPS did not immediately comment on the BPM's announcement. The bank has a board meeting scheduled on Monday, giving it a first opportunity to discuss the matter, according to a person close to the matter.
Background and Previous M&A Activity
BPM's Investment in MPS
Banco BPM became an investor in MPS in November 2024, when the Italian government completed the reprivatisation of the bailed-out Tuscan bank and brought in domestic investors as core shareholders.
UniCredit's Failed Takeover Attempt
Prospects of a BPM-MPS tie-up at the time prompted UniCredit to launch a takeover offer for Banco BPM. The bid ultimately failed in July 2025 but prevented the target from pursuing alternative M&A moves.
Exchange Rate Information
($1 = 0.8681 euros)
Reporting Credits
(Reporting by Valentina Za and Angelo Amante. Editing by Kirsten Donovan and Mark Potter)
