A Banco BPM SpA financial institution department in Milan, Italy, on Nov. 15, 2024.
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Italy’s Banco BPM mentioned on Sunday it could invite Banca Monte dei Paschi di Siena to debate a possible tie-up that might create the nation’s second-biggest banking group, overtaking UniCredit.
The long-mooted deal, which UniCredit has sought to dam, would create a gaggle price round 50 billion euros ($58 billion) on the Milan bourse. Banco BPM estimated earnings per share would rise by greater than 10%, pushed by annual pre-tax advantages of greater than 1.1 billion euros.
The announcement may kick-off a second wave of dealmaking in Italian banking after a burst of M&A exercise final 12 months.
Banco BPM mentioned its board, which incorporates representatives of France’s Credit score Agricole, its principal shareholder, had unanimously permitted a transfer to specific curiosity to MPS in discussing a “merger of equals.”
The financial institution gave no particulars on deal construction, saying solely that it could give each teams equal weight within the mixed entity.
MPS didn’t instantly touch upon the BPM’s announcement. The financial institution has a board assembly scheduled on Monday, giving it a primary alternative to debate the matter, in accordance with an individual near the matter.
Banco BPM turned an investor in MPS in November 2024, when the Italian authorities accomplished the reprivatization of the bailed-out Tuscan financial institution and introduced in home buyers as core shareholders.
On the time, prospects of a BPM-MPS tie-up prompted UniCredit to launch a takeover provide for Banco BPM. The bid in the end failed in July 2025 however prevented the goal from pursuing various M&A strikes.
