Banco BPM SpA bank branch in Milan, Italy, November 15, 2024.
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Italian bank BPM said on Sunday it has invited Banco Monte dei Paschi di Siena to discuss a possible partnership to overtake UniCredit as the country’s second-largest banking group.
The long-discussed deal, which UniCredit has tried to block, would create a group worth about 50 billion euros ($58 billion) on the Milan stock exchange. Banco BPM estimates that earnings per share will increase by more than 10% with pre-tax profit of more than 1.1 billion euros for the year.
The announcement could mark the start of a second wave of deal deals in Italy’s banking world, following a surge in M&A activity last year.
Banco BPM announced that its board of directors, which includes representatives from France’s Crédit Agricole, its largest shareholder, has unanimously approved a motion to express interest in MPS in “merger of equals” discussions.
The bank did not provide details of the deal structure, saying only that both groups would be given equal weight in the combined entity.
MPS did not immediately comment on BPM’s announcement. The bank has scheduled a board meeting for Monday, which will give it the first opportunity to discuss the issue, the people said.
Banco BPM became an investor in MPS in November 2024, when the Italian government completed the re-privatization of the bailed-out Bank of Tuscany and welcomed domestic investors as core shareholders.
At that time, the prospect of a partnership between BPM and MPS led UniCredit to launch an acquisition proposal for Banco BPM. The bid ultimately failed in July 2025, but the target company was unable to proceed with another M&A move.
