A Banco BPM SpA bank branch in Milan, Italy, on Nov. 15, 2024.
Bloomberg | Bloomberg | Getty Images
Italy’s Banco BPM said on Sunday it would invite Banca Monte dei Paschi di Siena to discuss a potential tie-up that would create the country’s second-biggest banking group, overtaking UniCredit.
The long-mooted deal, which UniCredit has sought to block, would create a group worth around 50 billion euros ($58 billion) on the Milan bourse. Banco BPM estimated earnings per share would rise by more than 10%, driven by annual pre-tax benefits of more than 1.1 billion euros.
The announcement could kick-off a second wave of dealmaking in Italian banking after a burst of M&A activity last year.
Banco BPM said its board, which includes representatives of France’s Credit Agricole, its main shareholder, had unanimously approved a move to express interest to MPS in discussing a “merger of equals.”
The bank gave no details on deal structure, saying only that it would give both groups equal weight in the combined entity.
MPS did not immediately comment on the BPM’s announcement. The bank has a board meeting scheduled on Monday, giving it a first opportunity to discuss the matter, according to a person close to the matter.
Banco BPM became an investor in MPS in November 2024, when the Italian government completed the reprivatization of the bailed-out Tuscan bank and brought in domestic investors as core shareholders.
At the time, prospects of a BPM-MPS tie-up prompted UniCredit to launch a takeover offer for Banco BPM. The bid ultimately failed in July 2025 but prevented the target from pursuing alternative M&A moves.
