The ECB authorizes Intesa Sanpaolo's takeover bid for Mps

The European Central Bank has authorized the acquisition of Monte dei Paschi di Siena by Intesa Sanpaolo. The news, reported by ANSA, came at 8:48 pm on October 27, the day before the shareholders’ meeting of the Siena-based bank. The ECB’s authorization concerns the direct controlling stake in Mps and, as a consequence, indirect controlling stakes in a series of related companies: Wise Dialog Bank, Mediobanca, Mediobanca Premier and Compass Banca.

Completing the regulatory picture was the green light from the Bank of Italy, which concerns further indirect stakes: Mps Fiduciaria, Spafid, Mbps Leasing, MBCredit Solutions, MBFacta, Mediobanca Sgr, Fidi Toscana and Generali group’s Sgr. The set of authorizations outlines the network of corporate controls that the deal would bring with it, well beyond the perimeter of Mps alone, involving the articulated Mediobanca group and its subsidiaries in asset management and consumer credit.

The regulatory step comes just ahead of the Mps shareholders’ meeting, for which turnout of around 70% of capital is estimated. The Treasury, which holds 4.86% of the bank, arrives at the meeting with a reduced but still significant stake in the vote count. The outcome of the meeting thus comes at a time when the deal has already obtained most of the necessary clearances from European and national supervisory authorities.

The deal is part of a banking consolidation process that directly intertwines Mps, Mediobanca and their respective subsidiaries, with the ECB and the Bank of Italy separately addressing the different levels of shareholding, direct and indirect, involved in the corporate scheme. The green light from European supervision represents the most awaited piece before the shareholders’ vote in Siena.