Banca Monte dei Paschi di Siena’s (BMPS) board has approved a full merger with Mediobanca, which will result in Mediobanca being delisted from the Milan stock exchange.
“Accordingly, it has resolved to start the activities aimed at the integration with BMPS through a merger by incorporation and the consequent delisting of Mediobanca, in accordance to the regulations governing related-party transactions and the applicable legal requirements,” Mediobanca said in a statement.
BMPS acquired an over 86% stake in Mediobanca in September last year.
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Its chief executive Luigi Lovaglio is now tasked with executing the integration and meeting cost-reduction goals set out in the approved plan, reported Bloomberg.
The bank aims to achieve €300m ($355m) in cost savings and broaden activities across asset management, private banking, investment banking and insurance, as per Bloomberg.
The integration is also designed to strengthen capital by enabling faster utilisation of up to €2.9bn in deferred tax assets, the publication added.
Under the restructuring, Mediobanca’s corporate and investment banking and high-end private banking operations will be moved into a new wholly owned subsidiary that will continue under the Mediobanca name.
This entity will also include BMPS’ 13% stake in Assicurazioni Generali.
The future of Mediobanca’s listing and the group’s holding in Generali were key questions following the acquisition.
Lovaglio is expected to present his plans for the combined group on 27 February.
The timeline for completing the merger and delisting was not detailed in the statement, with further approvals required from regulators and shareholders under Italian law.
In a statement, BMPS said: “The new Group structure is aimed at achieving strategic and profitability objectives and at fully achieving industrial synergies so to maximise value creation. This configuration is designed to enhance the distinctive expertise of Mediobanca and its professional resources, within a specialised operating model.”
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