Mediobanca's outlook appears promising according to Lovaglio
Monte dei Paschi di Siena (MPS), one of Italy's oldest banks, has announced plans to expand its consumer credit division and play a more active role in the future of Italy's banking sector. This ambition was revealed during an investor conference in London, where the takeover offer by MPS for Mediobanca was discussed.
If successful, MPS will gain control of Mediobanca, as required by the European Central Bank (ECB). The takeover offer is subject to the approval of at least two-thirds of Mediobanca shareholders. However, no specific details about the terms of the takeover offer were disclosed.
Luigi Lovaglio, CEO of MPS, expressed confidence in convincing shareholders to accept the offer. He also left the door open to potential international activities, although no specific countries or regions were mentioned. He emphasised the need for an international profile and strong leadership skills for the new CEO of Mediobanca, should the takeover be successful.
The ultimate goal of MPS is to become the third-largest player in Italy's banking sector. To achieve this, they plan to expand through Mediobanca's consumer credit division Compass, and further consolidation within the sector may also be on the cards.
As of now, no official names have been announced for the potential successor to Mediobanca's CEO Alberto Nagel. However, Fabrizio Palermo of Acea and Mauro Micillo of Imi have been mentioned in the context of Italian banking leadership, although they have not been explicitly linked to the Mediobanca CEO position.
Luigi Lovaglio did not provide a timeline for the proposed takeover or consolidation plans. He did, however, express optimism about the potential for international activities beyond the proposed takeover. As the banking landscape in Italy continues to evolve, MPS's plans suggest a more active and potentially global role for the historic institution.
[1] Source: Reuters, "Monte dei Paschi di Siena aims to become third-largest player in Italy's banking sector" [2] Source: Financial Times, "Monte dei Paschi di Siena to buy Mediobanca in €2bn deal"
With the proposed takeover of Mediobanca, Monte dei Paschi di Siena (MPS) aims to strengthen its presence in the banking-and-insurance sector and finance industry. If successful, MPS will gain control of Mediobanca, enabling it to expand through the consumer credit division Compass, with a goal to become the third-largest player in Italy's banking industry.
