Monte dei Paschi di Siena (MPS) and Mediobanca are progressing towards a merger, with key analytical activities expected to conclude by March 10. The firms are focused on implementing a unified digital and AI engine to streamline customer interactions, accelerate credit decisions, and improve operational efficiency, according to company statements.
Talent Retention Costs Estimated at $66M – $77M
MPS anticipates costs of between $66 million and $77 million over the next three years to retain key talent from Mediobanca, particularly bankers. “Mediobanca has already initiated and is strengthening these efforts with additional initiatives,” said MPS CEO Luigi Lovaglio during an earnings call. Lovaglio expressed optimism that organizational clarity will reduce uncertainty and encourage bankers to join Mediobanca and Premier rather than seek opportunities elsewhere, though some turnover is expected due to aggressive recruitment by competitors.
Exchange Ratio to be Determined by March 10
Both MPS and Mediobanca confirmed in separate statements that they are continuing due diligence and analysis related to the merger project, with completion targeted for March 10. The process will adhere to regulations governing transactions with related parties.
MPS CEO: Building a Sustainable, High-Performing Group
“The new industrial plan represents the natural evolution of the transformation path successfully undertaken in recent years,” stated Luigi Lovaglio, CEO of MPS. “We have designed a clear and effective Group structure, capable of fully leveraging the platforms of Banca Monte dei Paschi di Siena and Mediobanca to improve the customer experience across all channels. We are building a solid, diversified and profitable banking group, capable of generating sustainable growth and very attractive returns for all our shareholders.”
“Together, Banca Monte dei Paschi di Siena and Mediobanca strengthen the excellence of the Italian banking tradition, combining MPS’s solid commercial network with Mediobanca’s highly recognized advisory culture, whose brand and expertise are preserved as a fundamental pillar of our Group,” Lovaglio added. “With strategic clarity, disciplined execution and a solid capital position, we are ready for a new phase of value creation, leveraging deep roots and looking towards new ambitious frontiers.”
The planned merger between MPS and Mediobanca signals a significant consolidation in the Italian banking sector, potentially reshaping the competitive landscape. The focus on a unified digital and AI platform underscores the growing importance of technology in driving efficiency and customer experience within the financial services industry.
