The ECB authorizes Banca Monte dei Paschi's takeover bid for Mediobanca

The European Central Bank (ECB) has issued the necessary authorization for the direct acquisition by Banca Monte dei Paschi di Siena (BMPS) of a controlling stake in Mediobanca and the indirect acquisition of a controlling stake in Mediobanca Premier and Compass Bank , according to the Tuscan bank, considered the oldest bank in the world, since its origins date back to 1472.

The ECB has also simultaneously issued authorization for the acquisition of a direct stake in Mediobanca with a value exceeding 10% of the Group's consolidated equity , as well as for the corresponding indirect stakes.

Pursuant to the authorization, BMPS must submit to the ECB, within six months of acquiring control of Mediobanca, an integration plan that includes information on the impact on capital and financing plans, as well as on the digital strategy and IT security; on the organization of the ICT system; and on the corporate governance structure of the new group.

Furthermore, should BMPS's offer achieve acceptance below 50%, the entity is expected to provide the ECB within three months of the transaction's completion date with a report approved by the board of directors and shared with the designated independent auditors confirming the existence of de facto control.

Alternatively, in the absence of de facto control, a plan approved by the board of directors will be presented, outlining the strategic approach to the acquired stake in Mediobanca , the criteria for maintaining or disposing of such stake, along with relevant key operational objectives, timelines, and milestones; and a statement of whether the acquisition of a stake of more than 50% is planned and its estimated impact on capital.

Thus, the board of directors of BMPS will meet this Thursday to proceed with the capital increase for the offer for Mediobanca. Last April, the Italian government decided not to use the so-called "golden share," thus giving BMPS the green light to proceed with its €13.3 billion offer for Mediobanca through a share swap, with the aim of creating "a new national champion in the Italian banking sector."