Monte dei Paschi di Siena (MPS) has announced it will take full control of Mediobanca and delist it from the stock exchange. This decision ends weeks of uncertainty regarding the merchant bank’s future. MPS, which received a state bailout in 2017 and was reprivatised between 2023 and 2024, had previously acquired 86% of Mediobanca. The move to fully integrate and delist raised questions about the practicality of maintaining Mediobanca’s listing with a significantly reduced public float. Monte dei Paschi di Siena is an Italian bank offering a range of financial services. Mediobanca specialises in investment banking.
The plan to delist Mediobanca had reportedly caused internal divisions, with some directors, including representatives of investor Francesco Gaetano Caltagirone, opposing the complete integration. During the presentation of MPS’s full-year results last week, Chief Executive Luigi Lovaglio stated that the decision regarding delisting was still pending but that the bank was focused on maximizing savings from the merger.
On Tuesday, MPS confirmed that its board had resolved to proceed with delisting Mediobanca. The bank did not specify how it intends to acquire the remaining 14% stake. Following the delisting, MPS will merge Mediobanca into its group. An unlisted entity will then be established to house the private and investment banking activities under the Mediobanca brand, preserving its identity.
Furthermore, the new entity will also control Mediobanca’s 13% stake in Italian insurer Generali, making it Generali’s largest investor. MPS is scheduled to unveil its strategic plan for the combined group on February 27.
