ECB approves takeover of Mediobanca by Monte dei Paschi
The European Central Bank (ECB) has granted Banca Monte dei Paschi di Siena (MPS) approval for the planned takeover of the investment bank Mediobanca. The approval also covers the case where MPS acquires less than 50% of the shares, provided that MPS proves effective control.
Integration and future steps
MPS must submit a detailed integration plan within six months following the completion of the transaction. This plan should include capital adequacy and preparation for negative scenarios. In addition to the ECB approval, further consents from national antitrust authorities and the financial market regulator Consob are required. The takeover offer is expected to officially commence in early July 2025.
Market impacts and challenges
Of interest to investors in the German-speaking region: The merger could influence stability and competition in the European banking sector. However, it remains unclear whether MPS will achieve a majority in Mediobanca. The high stock price of Mediobanca relativizes the profitability of the deal for MPS. Investors are pushing for a cash component in the offer.
Support and shareholder structure
The Italian government holds 11.7% of Monte dei Paschi and supports the deal, along with major shareholders such as Francesco Caltagirone. Nevertheless, it remains unclear what impact the complex shareholder structure will have on the success of the takeover.
In summary, the ECB approval paves the way for consolidation in the Italian banking sector. However, uncertainty regarding the offer and competitive conditions remains for investors.