Italy's largest banking group, Intesa Sanpaolo, has launched an unsolicited €30.6 billion cash-and-share takeover bid for rival Monte dei Paschi di Siena (MPS), marking what could become the largest banking deal in Italian history. The offer, announced on Monday, aims to create the eurozone's second-largest banking group by market value, trailing only Spain's Santander. This significant move comes amidst differing reports regarding the Italian government's stance on the proposed acquisition.
According to a Bloomberg Opinion piece by Paul J. Davies, the bid is "unlikely to win the backing of the Italian government." This perspective highlights potential political hurdles for Intesa's ambitious plan. However, sources familiar with the matter, as reported by Reuters, suggest the Italian government intends to maintain a neutral stance on merger and acquisition moves targeting MPS and would not use its "golden powers" to derail Intesa's proposal.
Intesa's offer, which values each MPS share at €10.09, includes 16 newly issued shares for every 10 MPS shares plus €1 cash per share. To address potential antitrust concerns, Intesa has struck a deal with insurer Unipol to sell a banking business comprising 635 MPS branches and the MPS brand, should the acquisition be successful. This arrangement aims to preserve MPS as a retail banking name and facilitate regulatory approval.
The bid intensifies the consolidation trend in Italian banking, especially after Banco BPM, Italy's fourth-largest bank, had also expressed interest in a merger of equals with MPS just a day prior. MPS, the world's oldest bank, was bailed out by the Italian state in 2017 and reprivatized in 2023-2024, becoming a focal point for domestic bank mergers. The bank also acquired Mediobanca in 2025, further complicating the competitive landscape. The transaction is expected to close by December 2026, pending shareholder and regulatory approvals.
