Banco BPM SpA announced that its board unanimously approved sending a letter to Banca Monte dei Paschi di Siena SpA expressing interest in opening merger talks, aiming to create Italy’s second‑largest banking group.
The proposed combination is expected to generate pretax synergies exceeding €1.1 billion, comprising over €650 million in cost savings and more than €450 million in revenue synergies.
No exchange ratio or specific financial terms were disclosed.
The pro‑forma combined entity would have a market capitalisation above €50 billion, a CET1 capital ratio of approximately 15 %, earnings‑per‑share growth of over 10 %, and projected shareholder value creation of at least €5.5 billion.
The transaction would be coordinated with Monte Paschi’s ongoing integration of Mediobanca and would broaden options concerning Monte Paschi’s stake in Assicurazioni Generali SpA.
Governance of the merged group would be based on balanced representation, preserving both brands, historic offices and local roots.
