Bpm, stop consultations for the merger with Mps: There are no conditions

Banco Bpm has decided to halt discussions with Banca Monte dei Paschi di Siena (MPS) regarding a potential merger. The board of directors unanimously approved the suspension of talks, which were initiated following a communication sent on June 7 expressing interest in exploring the terms of such an operation. The decision was promptly conveyed to MPS. In its statement, Banco Bpm emphasized its continued focus on the Group’s Strategic Plan and long-term value creation for all shareholders. The meeting of Banco Bpm's Board of Directors took place today to assess the current status of the potential merger between the bank and MPS. This followed the sending of a communication dated June 7, wherein Banco Bpm expressed its interest in initiating dialogue to discuss and agree upon the terms of the proposed operation, along with subsequent developments. Despite acknowledging the "strong strategic and industrial rationale" of the proposal outlined in the June 7 letter, potentially leading to the formation of a new banking and financial group in Italy and generating significant value for both institutions, the board concluded that, nearly two months after the letter was sent, the necessary conditions for reaching a shared agreement had not materialized. In light of this assessment, and considering the need for maximum transparency towards the market and all shareholders, the Board of Directors of Banco Bpm has therefore resolved, unanimously, to "suspend consultations regarding the potential merger and provide immediate notification to MPS." The bank reaffirmed its commitment to its long-term strategic objectives and value creation for its shareholders. The decision comes shortly after Banco Bpm’s majority shareholder, Crédit Agricole, rejected the possibility of a merger with MPS. During the presentation of the half-year results, Olivier Gravalda, CEO of Crédit Agricole, voiced his opposition. He stated that the bank is indispensable and that nothing can be done without it or against it. He also mentioned that he had never received any proposals for a merger between MPS and Banco Bpm. This stance has contributed to the termination of the deal, which had reignited concerns about the Italian banking sector and intersected with Intesa Sanpaolo’s bid for MPS. The potential merger between Banco Bpm and MPS had been viewed as a significant step toward consolidating the Italian banking landscape. However, the lack of progress in negotiations, combined with the position taken by Crédit Agricole, has led to the cancellation of the talks. The situation highlights the complex dynamics within the Italian banking industry, where major players are navigating regulatory challenges, competitive pressures, and shareholder expectations. As the dust settles on this development, attention will likely shift back to the ongoing efforts of Intesa Sanpaolo in its pursuit of MPS. The outcome of this merger attempt could have broader implications for the structure and stability of the Italian banking system. For now, Banco Bpm remains focused on executing its strategic plan and delivering sustainable value over time.