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Monte Paschi’s Acquisition Bid For Mediobanca Cleared by ECB
The world’s oldest lender Monte dei Paschi di Siena (MPS) has received the European Central Bank’s (ECB) approval to proceed with its proposed acquisition of rival Mediobanca, even if it acquires less than 50% ownership. MPS plans to formally launch the offer next month, backed by key Mediobanca shareholders including the Del Vecchio and Caltagirone families. The acquisition follows a share sale by the Treasury department in November, which is now under investigation by Milan prosecutors.
The ECB has imposed conditions on MPS, requiring it to submit an integration plan within six months covering strategy, IT and cybersecurity, capital, and retention policies. If MPS ends up with a minority stake, it must report within three months whether it can exert de facto control or clarify its strategic intent. The deal would combine MPS’s commercial banking with Mediobanca’s investment and wealth management capabilities. Despite Mediobanca’s efforts to resist the takeover, it delayed a shareholder vote on a competing strategy fearing lack of sufficient support. This acquisition is part of a broader wave of consolidation in Italy’s banking sector amid declining interest rates.
Monte Dei Paschi’s notes traded stable with its 7.708% 2028s at 109.77, yielding 3.62%.
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