Banco BPM Proposes Merger of Equals With Monte dei Paschi, Setting Stage for Battle With UniCredit
Banco BPM invited Banca Monte dei Paschi di Siena to discuss a merger that would create Italy's second-largest banking group, valued at about 50 billion euros.
freepressjournal.inBanco BPM said on Sunday it would invite Banca Monte dei Paschi di Siena to discuss a potential tie-up that would create Italy's second-biggest banking group, overtaking UniCredit. The long-mooted deal would create a group worth around 50 billion euros ($58 billion) on the Milan bourse. 1 billion euros.
The bank gave no details on deal structure, saying only that it would give both groups equal weight in the combined entity. MPS did not immediately comment on the 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.
Banco BPM became an investor in MPS in November 2024, when the Italian government completed the reprivatization of the bailed-out Tuscan bank and brought in domestic investors as core shareholders. At the time, prospects of a BPM-MPS tie-up prompted UniCredit to launch a takeover offer for Banco BPM. The bid failed in July 2025 but prevented the target from pursuing alternative M&A moves.
The announcement could kick-off a second wave of dealmaking in Italian banking after a burst of M&A activity last year. UniCredit has sought to block the potential BPM-MPS deal.
