Monte Paschi's Board Approves Plan to Delist Mediobanca Shares

Banca Monte dei Paschi di Siena SpA’s board has approved a plan to fully integrate Mediobanca SpA and pursue the investment bank’s delisting. The decision, announced on 2026-02-17, will see Mediobanca incorporated into the group and removed from trading in Milan. The integration marks the end of Mediobanca’s long-standing position as a separately listed entity in Italy’s corporate and capital markets according to reports.

Monte Paschi completed its €17 billion acquisition of Mediobanca in September 2025, forming Italy’s third-largest lender. The delisting follows months of internal debate among board members, with some opposing full integration. The decision aims to streamline operations, reduce costs, and maximize synergies between the two institutions.

The newly integrated Mediobanca will be housed in a wholly owned, unlisted entity that retains the Mediobanca brand. This new structure will include its corporate and investment banking divisions, as well as its high-end private banking services. The entity will also hold Mediobanca’s 13% stake in Italian insurer Assicurazioni Generali.

Why Did This Happen?

The move to delist Mediobanca was driven by the need to consolidate the group’s operations and achieve cost savings. Monte Paschi aims to realize €300 million in annual savings through the merger. The integration also aligns with broader strategic goals, including expanding the group’s presence in asset management, private banking, and insurance.

The decision follows months of uncertainty over the future of Mediobanca after Monte Paschi acquired 86% of its shares in 2025 according to market analysis. Concerns arose about the viability of keeping Mediobanca listed with such a reduced floating capital as reported. The board’s decision resolves these uncertainties while preserving the brand’s identity and expertise.

What Are the Implications for Shareholders and the Market?

The delisting requires regulatory and shareholder approvals under Italian corporate law. A timeline for the merger and delisting has not yet been disclosed, but the process will likely take several months to complete.

Monte Paschi plans to unveil a detailed strategic plan for the combined group on February 27, 2026. The plan is expected to outline specific steps for leveraging Mediobanca’s strengths in investment banking and private banking.

Investors are now watching for details on how the 14% stake in Mediobanca not owned by Monte Paschi will be acquired. The board has not yet clarified the method for obtaining the remaining shares, which could impact the speed and cost of the integration.

What Comes Next?

Monte Paschi’s CEO, Luigi Lovaglio, emphasized the need to consolidate the merger and deliver on the cost-cutting targets outlined in the group’s strategy. The integration is also expected to strengthen the bank’s capital position by accelerating the use of up to €2.9 billion in deferred tax assets.

The decision aligns with a broader trend of consolidation in the European banking sector. As regulators and investors push for greater efficiency, mergers and delistings are becoming more common.

The next steps for Monte Paschi include obtaining the necessary approvals and executing the delisting. Once completed, the bank will shift its focus to implementing the strategic plan and realizing the anticipated synergies.