Banco BPM calls off Monte dei Paschi merger after Credit Agricole opposition and Intesa rival bid
The Italian lender’s board voted unanimously on Friday, July 31, to halt discussions with Banca Monte dei Paschi di Siena, nearly two months after proposing a combination that was complicated by a rival Intesa Sanpaolo bid and opposition from major shareholder Crédit Agricole.
Merger talks end
Banco BPM’s board of directors met on Friday afternoon and decided, with a unanimous vote, to terminate the consultations regarding a potential aggregation with Banca Monte dei Paschi di Siena (MPS). The decision, communicated immediately to the Siena-based bank, came after a review of the status of the project first proposed in a letter sent to MPS on 7 June.
The conditions for reaching a shared agreement between the parties have not materialised to date.
The statement reaffirmed the “strong strategic and industrial rationale” of the plan, which could have created a leading Italian banking and financial group and generated significant value for both sets of shareholders. But almost two months after the initial approach, no common ground had been found.
- Banco BPM sends a letter to Banca MPS proposing the start of merger talks.
- Intesa Sanpaolo launches a public exchange offer (Opas) for Banca MPS, creating a competing bid.
- Credit Agricole CEO Olivier Gravalda signals opposition during semi-annual results; Banco BPM board votes unanimously to end consultations with MPS.
A proposal derailed
Banco BPM approached MPS on 7 June with a letter expressing interest in opening a dialogue to discuss and agree the terms of a merger. The following day, 8 June, Intesa Sanpaolo launched a public exchange offer (Opas) for MPS, a competing move that immediately complicated the landscape. The rival bid introduced an alternative path for the Siena lender and effectively froze the Banco BPM initiative.
Credit Agricole pushes back
The final blow came hours before the board vote, when Crédit Agricole, Banco BPM’s largest shareholder, voiced its opposition during the presentation of its semi-annual results. Chief Executive Officer Olivier Gravalda was unambiguous.
We are indispensable, nothing can be done without us or against us. We never received any merger proposals between Mps and Bpm.
With the French group holding a blocking position, the message left little room for Banco BPM to continue the talks.
Back to standalone plan
Banco BPM will now concentrate fully on its own strategic plan and on creating long-term value for all its shareholders. The bank did not indicate any intention to revisit the combination or to seek alternative partners, ending weeks of speculation over a reshaping of the Italian banking sector.
