Unipol agrees to carve out MPS assets for BPER merger in €3.5bn deal
Unipol has reached an agreement to acquire approximately 635 Monte dei Paschi di Siena branches and the MPS brand from Intesa Sanpaolo, contingent on Intesa’s successful takeover bid.
Italian insurer Unipol has entered into an agreement to purchase a significant portion of Monte dei Paschi di Siena (MPS) from Intesa Sanpaolo, a transaction that sets the stage for a major consolidation in the Italian banking sector. The deal involves the acquisition of roughly 635 branches, central functions, and the MPS brand, with a purchase price capped at €3.5bn ($4.04bn).
The transaction is strictly contingent upon Intesa Sanpaolo’s takeover offer for MPS succeeding. Unipol intends to merge these acquired assets with BPER Banca, the mid-sized Italian bank in which it currently holds the largest shareholder position. This move aligns with the insurer’s broader strategy to establish a substantial presence in the financial services market.
Unipol chief executive Matteo Laterza stated that the insurer aims to hold a stake of more than 30% in the resulting combined financial entity. Laterza noted that there is scope to increase this holding over time, depending on the group’s capital generation capabilities. He described the ambition to create a large financial conglomerate with equal profitability contributions from both its insurance and banking divisions.
To fund the acquisition, Unipol plans to utilise surplus capital generation alongside a planned €2.5bn capital increase, which is expected to be completed by the end of the year. Laterza confirmed that the terms of the agreement with Intesa shield Unipol from any potential rise in the value of Intesa’s bid beyond the agreed limits, providing financial certainty for the insurer.
The development follows recent shifts in the Italian banking landscape. BPER recently increased its offer to acquire Banca Popolare di Sondrio to €5.4bn ($6.4bn), up from an initial €4.3bn all-share proposal launched in February. Meanwhile, Banco BPM withdrew from talks regarding a combination with MPS following opposition from its largest shareholder, Crédit Agricole.
This report was originally created and published by Retail Banker International, a GlobalData owned brand.
