Monte dei Paschi di Siena eyes takeover of Banco BPM after merger talks collapse

Negotiations for a merger of equals between Monte dei Paschi di Siena (MPS) and Banco BPM ended in late July after Banco BPM’s board cited a lack of progress and opposition from its largest shareholder, Crédit Agricole, which holds about 29.3% of the bank. With the merger off the table, MPS CEO Luigi Lovaglio is evaluating a possible takeover of Banco BPM, potentially structured as a share‑swap that would involve Crédit Agricole directly and limit cash outlays.

The move comes as Intesa Sanpaolo has already launched an unsolicited €30.6 billion public‑offer‑to‑acquire MPS, intensifying consolidation in the Italian banking sector. Crédit Agricole’s executive Olivier Gavalda said the group would consider “any solid project” but noted it is “very difficult” to see how a combination could work at this stage. No formal contact has been made, and any deal would need to address governance, board representation and the French bank’s continued stake in the merged entity.