Merger opens new chapter in Italian banking


Contrary to speculation, MPS joining forces at a later stage with a “French BPM” is not realistic and would only provide a bigger distribution network for Credit Agricole’s financial products. a source said. — Reuters

MILAN: Monte dei Paschi di Siena’s (MPS) bold takeover of Mediobanca is the biggest deal yet in a merger wave transforming Italian banking, and its chief executive has said it will position the combined entity for a further round of consolidation.

Immediately at stake is a government ambition to merge Monte dei Paschi with Banco BPM, part of Rome’s long-running effort to create a third major Italian banking group to rival Intesa Sanpaolo and UniCredit .

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