Italy’s banking landscape is heading for another major round of consolidation. Monte dei Paschi di Siena wants to acquire both Banco BPM and Banca Generali. The two offers have a combined value of around 34 billion euro – and also form part of a defensive battle against Intesa Sanpaolo.
Of all institutions, Monte dei Paschi—which was once bailed out by the government—is now attempting to become a consolidator itself through two takeovers worth billions—while at the same time fending off an attack by industry leader Intesa Sanpaolo. (Image: Shutterstock)
Friday, 21 August 2026 08:42
Italy’s Banca Monte dei Paschi di Siena (MPS) is going on the offensive. On Friday, the lender launched two parallel takeover bids for Banco BPM and asset manager Banca Generali, Reuters reported. Both transactions are to be financed entirely with shares.
MPS is offering around 25.3 billion euro for Banco BPM, while Banca Generali is valued at approximately 8.7 billion euro. Together, the two deals would therefore amount to around 34 billion euro.
Attack as Defence
There is more behind the spectacular double bid than a simple desire to expand. MPS itself is under considerable takeover pressure: in June, Intesa Sanpaolo submitted an unsolicited offer of around 36 billion euro for the Siena-based bank.
MPS management, led by CEO Luigi Lovaglio, has rejected the approach. A takeover by Italy’s largest bank has also met with reservations in Rome. Among other concerns, the government fears further concentration in the domestic banking market.
By seeking to acquire Banco BPM and Banca Generali simultaneously, Lovaglio is now attempting to fundamentally reshape the balance of power.
Italy’s Third-Largest Bank
If both transactions go through, they would create a financial group with a pro forma balance sheet of around 466 billion euros. According to MPS, total assets under management or administration would exceed 810 billion euros. This would make the group Italy’s third-largest bank.
MPS also expects substantial economies of scale. Annual pre-tax synergies are projected to amount to around 2.6 billion euro.
MPS shareholders are also set to receive an extraordinary distribution totalling 4 billion euro. This is to be paid partly in cash and partly in shares of insurer Generali. Through Mediobanca, which it acquired last year, MPS holds a stake of around 13 percent in Generali.
Banca Generali Bolsters Wealth Management
From a strategic perspective, the bid for Banca Generali is particularly significant. The asset manager would considerably strengthen the group’s wealth management business and help MPS diversify beyond traditional lending.
Banca Generali was already at the centre of Italy’s takeover battle last year. At the time, Mediobanca attempted to acquire the asset manager while it was itself being targeted by MPS. The Banca Generali transaction ultimately failed to materialise.
MPS, by contrast, succeeded in taking over Mediobanca. Following that acquisition, the bank now has a market capitalisation of around 36 billion euro.
A New Round in Italy’s Banking Takeover Battle
Whether Lovaglio’s plan will succeed remains uncertain. The double transaction requires approval from both shareholders and the relevant regulatory authorities. MPS is aiming to complete the deals by mid-February 2027, according to Euronext Live.
The stance of influential shareholders in the two target companies is also likely to prove decisive. France’s Crédit Agricole plays a particularly important role at Banco BPM, while insurer Generali is a key shareholder in Banca Generali.
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