Unipol plans over 30% stake in merged BPER-MPS banking entity

Italian insurer Unipol has set its sights on holding a controlling minority stake in the banking group that would emerge from a combination of BPER Banca and assets carved out of Monte dei Paschi di Siena (MPS).

Speaking to analysts after the company's first-half results, CEO Matteo Laterza said the ambition is to own more than 30% of the new financial entity. He added that the insurer would look to increase that stake over time, depending on its capital generation capacity.

The plan hinges on Intesa Sanpaolo's takeover bid for MPS. If successful, Unipol has agreed to buy a business comprising roughly 635 MPS branches, most of the lender's central operations, and the historic Monte dei Paschi brand. These assets would then be merged with BPER, where Unipol is already the largest shareholder.

Laterza described the goal as creating a large financial conglomerate with an insurance leg and a banking leg contributing equally to profitability.

He also addressed the terms of the agreement with Intesa, noting that protections are in place should the value of Intesa's bid rise beyond agreed limits. The price Unipol would pay for the MPS carve-out is capped at €3.5 billion.

To fund the acquisition, Unipol plans to direct its excess capital generation toward the deal, alongside a €2.5 billion capital increase expected to be completed by the end of the year.