Italy’s Monte dei Paschi Launches €13.3 Billion Takeover Bid for Mediobanca
Monte dei Paschi di Siena, Italy's oldest bank, offers a multi-billion-euro deal to acquire rival Mediobanca, potentially reshaping the country’s banking landscape.
Monte dei Paschi di Siena (MPS), Italy’s oldest bank, has made a €13.3 billion takeover bid for larger rival Mediobanca, marking a potential shift in Italy’s banking sector.
The offer values Mediobanca’s shares at €15.99 each, representing a 5% premium over their closing price on Thursday.
MPS, with a market capitalization of approximately €9 billion, is offering 23 of its own shares for every 10 shares of Mediobanca, which has a market value of €12.7 billion.
The proposed merger is expected to generate €700 million in annual pre-tax synergies, with MPS aiming to strengthen its capital position and profitability.
Shares in Mediobanca surged by 6.5% following the announcement, while MPS shares dropped by around 4%.
The bid follows Italy’s efforts to privatize MPS after it was bailed out in 2017, with the Italian Treasury holding a significant stake in the bank.
Recently, the Treasury has introduced new investors, including Delfin, the holding company of the family of late billionaire Leonardo Del Vecchio, and businessman Francesco Gaetano Caltagirone, both of whom are also major shareholders in Mediobanca.
MPS has undergone substantial restructuring under CEO Luigi Lovaglio, and the government is now exploring new partnerships following failed merger discussions with UniCredit in 2021. This move intensifies the competition within the Italian banking industry, which has already seen multiple merger and acquisition activities in recent months.
The offer values Mediobanca’s shares at €15.99 each, representing a 5% premium over their closing price on Thursday.
MPS, with a market capitalization of approximately €9 billion, is offering 23 of its own shares for every 10 shares of Mediobanca, which has a market value of €12.7 billion.
The proposed merger is expected to generate €700 million in annual pre-tax synergies, with MPS aiming to strengthen its capital position and profitability.
Shares in Mediobanca surged by 6.5% following the announcement, while MPS shares dropped by around 4%.
The bid follows Italy’s efforts to privatize MPS after it was bailed out in 2017, with the Italian Treasury holding a significant stake in the bank.
Recently, the Treasury has introduced new investors, including Delfin, the holding company of the family of late billionaire Leonardo Del Vecchio, and businessman Francesco Gaetano Caltagirone, both of whom are also major shareholders in Mediobanca.
MPS has undergone substantial restructuring under CEO Luigi Lovaglio, and the government is now exploring new partnerships following failed merger discussions with UniCredit in 2021. This move intensifies the competition within the Italian banking industry, which has already seen multiple merger and acquisition activities in recent months.
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