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European Central Bank approves Intesa Sanpaolo's Monte dei Paschi takeover

European Central Bank approves Intesa Sanpaolo's Monte dei Paschi takeover

Money Moves

MPS shareholders reject a defense plan, clearing the way for Intesa's €33 billion takeover

October 29th, 2026: MPS shareholders reject defense plan

Overview

Updated Nov 3

Monte dei Paschi di Siena shareholders rejected CEO Luigi Lovaglio's defense plan on October 29, clearing the way for Intesa Sanpaolo's €33 billion takeover of the world's oldest bank. About 91% of votes cast opposed the rival offers for Banco BPM and Banca Generali.

Intesa plans to break up MPS: half of its 1,200 branches and the Siena headquarters go to insurer Unipol, which will merge MPS with BPER under the Monte dei Paschi brand. Consob is expected to clear the offer document in early November, and the antitrust authority is due to rule in the second half of November.

Why it matters

If it closes, Italy's banking, insurance and investment-banking power consolidates under one group, creating the eurozone's second-largest bank.

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Key Indicators

€33B
Takeover offer value
Intesa's cash-and-shares bid, including the extra €800 million in cash triggered by the Oct. 29 vote.
13.4%
Indirect Generali stake
Intesa's indirect stake in insurer Generali through the acquisition of MPS and Mediobanca.
600
Branches to be divested
Half of MPS's 1,200 branches, sold to Unipol, which will merge MPS with BPER under the Monte dei Paschi brand.
1472
Year Monte dei Paschi was founded
The world's oldest operating bank, and the target of the takeover.

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People Involved

Carlo Messina
Carlo Messina
Chief executive of Intesa Sanpaolo
Won the MPS shareholder vote against Lovaglio's defense plan; awaiting Consob and antitrust approval.
LL
Luigi Lovaglio
Chief executive of Monte dei Paschi di Siena
Lost a shareholder vote on his defense plan on October 29; Intesa's takeover is set to proceed.

Organizations Involved

Banca Monte dei Paschi di Siena
Banca Monte dei Paschi di Siena
Bank
Shareholders rejected CEO Luigi Lovaglio's defense plan on October 29; Intesa's takeover is set to proceed.

The world's oldest operating bank, founded in Siena in 1472.
Intesa Sanpaolo
Intesa Sanpaolo
Bank
ECB approved the takeover; MPS shareholders rejected a defense plan on October 29; awaiting Consob and antitrust approval.

Italy's largest bank by market value.
CONSOB
CONSOB
Markets regulator
Must approve the offer document before the tender phase

Italy's securities regulator, roughly the equivalent of the U.S. Securities and Exchange Commission.
BPER Banca
BPER Banca
Bank
Set to merge with MPS under the Monte dei Paschi brand after Intesa's break-up plan.

Italian mid-sized bank set to merge with MPS under the Monte dei Paschi brand after Intesa sells half of MPS's 1,200 branches to Unipol.
Assicurazioni Generali
Assicurazioni Generali
Insurer
Intesa would indirectly hold 13.4% of it

Italy's largest insurer; its independence is central to the deal's regulatory review.
Mediobanca
Mediobanca
Investment bank
Would come under indirect Intesa control

Italy's premier merchant bank, and Generali's top shareholder.

Timeline

June 2026 October 2026

6 events Latest: October 29th, 2026 · 1 week ago
Tap a bar to jump to that date

  1. MPS shareholders reject defense plan

    Latest Shareholder vote

    About 91% of votes cast opposed CEO Luigi Lovaglio's rival offers for Banco BPM and Banca Generali. The rejection clears the way for Intesa's takeover and triggers an extra €800 million in cash for MPS investors.

  2. ECB approval confirmed: key obstacle cleared

    Milestone

    Media confirm the ECB approval, removing the key regulatory obstacle for the takeover.

  3. ECB grants authorization for the takeover

    Regulatory approval

    The ECB authorizes Intesa to control MPS and indirectly Mediobanca and other units.

  4. Intesa raises cash consideration

    Deal update

    Intesa raises the cash component to €1.25 per share. The offer is valued at about €31.4 billion before the extra €800 million top-up.

  5. Intesa files offer document with Consob

    Regulatory

    Intesa files the offer document with Italy's markets regulator, Consob.

  6. Intesa launches bid for MPS

    Announcement

    Intesa Sanpaolo announces a voluntary public tender and exchange offer on all MPS ordinary shares.

Scenarios

1

Consob clears the offer document, tender phase opens

Likely Resolves by Nov 30, 2026

Discussed by: Reuters, Europa Press, Handelsblatt

Italy's markets regulator approves the offer prospectus in early November as expected. Intesa then launches the tender phase, which runs several weeks. Investors can accept the offer before the antitrust decision lands.

2

Antitrust clears the deal with remedies

Likely Resolves by End of 2026

Discussed by: Reuters, Italian Competition Authority head Saverio Valentino

The competition authority approves the merger but requires additional divestments beyond the Unipol/BPER accord, or imposes behavioral remedies ensuring Intesa's Generali stake stays a purely financial investment. The deal proceeds with adjustments.

3

Takeover completes; MPS folds into Intesa

Likely Resolves by Q1 2027

Discussed by: Reuters, Intesa Sanpaolo, MarketScreener

After Consob and antitrust approvals, the tender offer closes with Intesa holding a controlling stake in MPS. Intesa then breaks up MPS: half of its 1,200 branches and the Siena headquarters go to Unipol, which merges MPS with BPER under the Monte dei Paschi brand.

4

Deal collapses on conditions or failed tender

Unlikely Resolves by Feb 28, 2027

Discussed by: Analysts cited by Reuters as a tail risk

The antitrust authority imposes conditions Intesa deems unacceptable, or the tender fails to attract enough acceptances. Intesa withdraws, leaving MPS under state control and the Italian banking map unchanged.

Historical Context

3 moments from history that rhyme with this story — and how they unfolded.

June 2017

Monte dei Paschi state rescue (2017)

After a years-long crisis and a failed capital increase, Italy's government pumped €5.4 billion into Monte dei Paschi, taking a majority stake and effectively nationalizing the world's oldest bank. It was the largest state bailout in Italian banking history.

Then

The state's majority stake stabilized the bank but left it under government control and under European state-aid scrutiny.

Now

The government spent years trying to sell its stake, a process culminating in the Intesa offer nearly a decade later.

Why this matters now

The takeover would finally resolve the state's ownership of MPS, nine years after the bailout.

February-July 2020

Intesa's hostile takeover of UBI Banca (2020)

Intesa Sanpaolo launched a hostile, all-shares bid worth about €4.9 billion for UBI Banca in February 2020, the first hostile takeover between major Italian banks. It completed the deal in July 2020 after winning over shareholders.

Then

Intesa absorbed UBI's northern Italian branch network, cementing its dominance in Lombardy.

Now

The success established a blueprint for Italian banking consolidation and showed Intesa's appetite for large acquisitions.

Why this matters now

It demonstrated that Intesa can execute big, contested takeovers, the same playbook it is using against MPS.

June 2017

Banco Popular resolution (2017)

After a bank run, the Single Resolution Board and the ECB sold Spain's Banco Popular to Banco Santander for €1 in June 2017, the first use of the EU's new bank resolution regime.

Then

Santander absorbed Popular; depositors were protected, but investors were wiped out.

Now

The case established the ECB's role in resolving failing eurozone banks and set a precedent for bank consolidation.

Why this matters now

It shows European regulators will push troubled banks into stronger hands, the same dynamic behind MPS's sale to Intesa.

Sources

(12)
+6
Intesa Sanpaolo Morningstar / Dow Jones Global Banking and Finance (Reuters) Il Messaggero Europa Press Handelsblatt MarketScreener België MarketScreener Canada Banking Gateway Reuters / Euronext Bloomberg MarketScreener / Dow Jones