Banca Monte dei Paschi di Siena purchase of Mediolanum approved

Banca Monte dei Paschi di Siena (MPS) has completed its acquisition of Mediobanca, securing approximately 86.3% of its shares for a total consideration exceeding €16.5 billion in cash and shares, according to White & Case LLP, which advised on the transaction. The European Central Bank (ECB) previously cleared the deal in June 2025, marking a critical regulatory milestone. The acquisition, initially announced in January 2025 as a 13.3 billion euro all-share offer, was later adjusted to a mixed-cash-and-shares structure to facilitate completion as reported.

The merger aims to create a diversified banking entity combining Mediobanca's strengths in wealth management and investment banking with MPS's retail and corporate banking networks. CEO Luigi Lovaglio emphasized the strategic rationale, stating the combined entity would leverage tax credits, achieve annual pre-tax synergies of €700 million, and enhance resilience through a broader revenue mix according to CNBC. Despite analyst skepticism regarding limited synergy potential as noted, Lovaglio asserted the deal positions MPS as a "new Italian champion" in an era of sector consolidation as stated.

Market reactions have been mixed. While MPS and Mediobanca shares have declined since the January 2025 bid announcement, Lovaglio remains confident the transaction will close by July 2025, unaffected by ongoing market volatility. The Italian government, which retains a 11.73% stake in MPS, has supported the move as part of broader efforts to stabilize and consolidate the domestic financial sector according to CNBC.

With the deal now finalized, the combined entity will focus on integrating operations while addressing challenges such as shareholder alignment and regulatory scrutiny. The transaction underscores Italy's evolving banking landscape, where consolidation is increasingly viewed as a pathway to competitiveness as White & Case noted.