Italy’s Banca Monte dei Paschi di Siena (MPS) has launched simultaneous all-share takeover offers for Banco BPM and Banca Generali, valuing the pair at €34bn combined in a move aimed at reshaping the domestic banking sector.
The proposals, announced on Friday, would see MPS pay €25.3bn for Banco BPM and €8.7bn for Banca Generali, with both transactions fully financed through MPS shares. The combined deal would create a group with a pro-forma balance sheet of €466bn and €810bn in client assets under management, positioning it as Italy’s third-largest bank by assets.
The offensive follows an unsolicited €36bn bid from Intesa Sanpaolo in June, which MPS and Italian authorities have opposed over concerns about market concentration. MPS CEO Luigi Lovaglio has framed the dual acquisitions as a defensive strategy to counter the larger rival’s expansion plans.
Strategically, the takeover of Banca Generali would bolster MPS’s wealth management franchise, diversifying its business beyond traditional lending. The asset manager had previously been at the center of Italy’s 2025 takeover saga, when Mediobanca attempted an acquisition while itself being targeted by MPS—a deal that ultimately collapsed. MPS later succeeded in acquiring Mediobanca, which now has a market capitalization of €36bn.
MPS estimates annual pre-tax cost synergies of €2.6bn from the combined operations and plans an extraordinary €4bn shareholder payout, partially in cash and partially in Generali shares. MPS holds a 13% stake in Generali through its 2025 acquisition of Mediobanca.
Approval from shareholders, regulators, and key stakeholders—including Crédit Agricole in Banco BPM and Generali in Banca Generali—will be critical. MPS aims to complete the transactions by mid-February 2027.
