Mediobanca, which has recently missed revenue targets and lowered its full-year net interest income forecast, may resist the acquisition and is reportedly considering counterstrategies.

MPS CEO Luigi Lovaglio emphasized the merger as a strategic opportunity to create a resilient new Italian banking champion with a diversified business model.

Key shareholders, including Delfin and Francesco Gaetano Caltagirone, have increased their stakes in MPS, signaling a push towards forming a competitive third banking group in Italy.

Finance Minister Giancarlo Giorgetti expressed confidence in the proposed merger, highlighting its potential benefits for the Italian economy.

Despite the optimistic outlook from MPS, investor skepticism is evident, as Mediobanca's share price fell by 6.9% following the announcement.

The proposed transaction is expected to be completed by the end of September 2025, pending further developments and negotiations.

On January 24, 2025, Monte dei Paschi di Siena (MPS) announced a substantial 13.3 billion euro all-share buyout offer for Mediobanca, a move that could reshape the Italian banking sector.

This merger is projected to generate 700 million euros annually in pre-tax synergies, enhancing profitability and strengthening capital positions for both banks.

However, analysts from KBW have expressed skepticism regarding the merger's potential synergies and overall likelihood of success.

The bid follows a failed initiative to merge MPS with Banco BPM, which was disrupted by UniCredit's unsolicited takeover attempts.

The Italian banking landscape is currently undergoing significant consolidation, with UniCredit's aggressive bids influencing market dynamics.