Breaking News

Monte dei Paschi di Siena

Monte dei Paschi di Siena Launches €13.3 Billion Takeover Bid for Mediobanca

Rome, January 25, 2025 – The Europe Today: Monte dei Paschi di Siena (MPS), Italy’s oldest bank, announced a surprise €13.3 billion takeover bid for Mediobanca on Friday, marking a bold move that could transform Italy’s banking sector.

The offer values Mediobanca shares at €15.99 each, representing a 5% premium on Thursday’s closing price. Mediobanca shareholders would receive 23 shares of Monte Paschi for every 10 Mediobanca shares held.

The deal, according to Monte Paschi, is expected to generate €700 million in pre-tax synergies annually and drive significant profitability while maintaining a robust capital position.

Shares in Mediobanca surged 6.5% following the announcement, while Monte Paschi’s stock dropped by approximately 4%.

This development comes as Monte Paschi emerges from years of financial difficulties, aided by a 2017 bailout from the Italian Treasury, which reduced its stake from 68% to 11.7%. Recently, the bank introduced new shareholders, including Delfin, the holding company of the late billionaire Leonardo Del Vecchio’s family, and Roman tycoon Francesco Gaetano Caltagirone. Combined, these two entities now hold close to 30% of Mediobanca.

The Tuscan lender’s move signals intensified competition in Italy’s banking sector, already heated by recent consolidation efforts. While the Italian government had initially envisioned merging Monte Paschi with Banco BPM to create a national champion, those plans faltered as UniCredit pursued alternative mergers, including with Germany’s Commerzbank.

Under CEO Luigi Lovaglio, Monte Paschi has undergone significant restructuring, improving its financial standing and positioning itself for growth. The proposed merger with Mediobanca represents a strategic shift, with the potential to reshape Italy’s banking landscape.

Observers now await responses from Mediobanca’s board and shareholders, as well as potential regulatory scrutiny of the landmark deal.