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Banco Bpm Halts Merger Talks With Monte dei Paschi

Crédit Agricole’s public rejection removed the deal’s main backer and leaves Banco Bpm refocusing on its strategic plan while Intesa Sanpaolo’s takeover bid for MPS remains central to the market dynamic.

Overview

  • Banco Bpm’s board unanimously decided to stop consultations with Banca Monte dei Paschi di Siena and informed MPS of the halt, a step taken Friday after nearly two months of talks that began with Banco Bpm’s June 7 letter.
  • Crédit Agricole, which holds about 29.3% of Banco Bpm, publicly opposed the proposed aggregation earlier the same day and its CEO said the group would not support moves done without its agreement.
  • Banco Bpm said it still sees a strategic rationale in the idea but that the necessary conditions to reach a shared deal did not materialize and that the bank will remain focused on executing its Strategic Plan.
  • The proposed merger had been presented as a near‑equal tie-up to create a leading Italian banking group and to offer an alternative to Intesa Sanpaolo’s takeover bid for MPS, but those defensive aims no longer drive the process.
  • Crédit Agricole signaled a preferred alternative of closer consolidation with Crédit Agricole Italia, a shift that could reshape future consolidation in Italy and keep MPS’s fate linked to Intesa’s bid and market moves by large shareholders.