In a bold move to consolidate Italy’s banking sector, Monte dei Paschi di Siena (MPS), the world’s oldest bank, unveiled a €13.3 billion ($14 billion) all-share bid for Mediobanca SpA on Friday. The offer signals a potential reshaping of the Italian banking landscape by merging two prominent financial institutions.
Details of the Offer
Monte dei Paschi is offering 2.3 of its newly issued shares for each Mediobanca share, valuing the target at €15.99 per share—a 5% premium over Mediobanca’s closing price of €15.29 on Thursday. Both banks’ boards have expressed support for the proposal.
The transaction would merge MPS, known for its retail and commercial banking, with Mediobanca, a leader in wealth management and investment banking, to create Italy’s third-largest bank in key market segments.
Strategic Goals
MPS CEO Luigi Lovaglio emphasized the merger’s potential to form a “new national champion” in Italy’s banking industry.
“We aim for a new national champion, with two excellent brands that we want to protect and further enhance,” Lovaglio said in a statement.
