Monte dei Paschi di Siena (MPS) and Mediobanca have taken concrete steps to move forward with a full merger, as confirmed in a joint statement by the banks.
Under the proposed terms, MPS plans to issue up to 1.6 billion euros ($1.9bn) in new shares, Reuters reported.
Mediobanka shareholders will receive 2.45 MPS shares for each Mediobanka share offered.
The offer is intended to allow MPS to acquire the remaining 14% of Mediobanka that it does not currently own, with the aim of privatizing the company.
The merger is part of a broader restructuring plan.
This includes the assignment of corporate and investment banking, along with private banking services for senior clients, to a wholly owned and unlisted BMPS subsidiary operating under the name “Mediobanka Spa”.
The reorganization brings together the financial advisor network, as well as the retail and wealth management operations of Mediobanka Premier and Banca Videba.
The latter will adopt a revised corporate name that reflects the Mediobanka brand.
If both the merger and the reorganization are completed, Mediobanka shareholders may see benefits such as increased liquidity from BMPS shares, participation in the BMPS announced share policy, potential access to other shareholders’ distributions, and involvement in the future plans of the BMPS Group.
The developments are consistent with the joint group strategy presented by outgoing MPS chief executive Luigi Lovaglio in February.
The search for a new CEO continues, the news agency said, with three candidates proposed by MPS for a shareholder vote in April.
No alternative candidate has been presented yet.
MPS announced a 2030 adjusted net profit target of 3.7bn euros ($4.4bn) and expects to finalize its merger with Mediobanka by the end of the year.
The bank also said it plans to deliver all estimated merger benefits by 2028.
“Monte de Paschi and Mediobanca approve full merger plan” was originally published by Private Banker International, a brand owned by GlobalData.
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