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Italy prepares to exit final state banking stakes

Rome is preparing to divest its remaining shares in domestic lenders, signaling a definitive end to state intervention in the banking sector. Economy Minister Giancarlo Giorgetti confirmed at the annual ABI meeting that the government intends to offload its 4.9% stake in Banca Monte dei Paschi di Siena.

Italy prepares to exit final state banking stakes
Photo: Business Person

The government’s exit from Banca Monte dei Paschi di Siena, valued at approximately €1.7 billion, appears imminent. Giorgetti suggested an accelerated bookbuilding procedure as the primary mechanism for the sale, a strategy designed to maintain a neutral stance during the current wave of industry consolidation. This divestment would clear the path for ongoing merger discussions, including a notable bid from Intesa Sanpaolo and potential interest from Banco BPM.

Beyond the MPS sale, the state is finalizing the return of BDM to private ownership, concluding a rescue process that began in 2019. Giorgetti emphasized that private-sector control is essential for strengthening the international competitiveness of Italian firms and driving investment in technology. Bank of Italy Governor Fabio Panetta echoed these sentiments, stressing that while consolidation is expected, it must preserve market competition and the responsiveness of banks to the real economy.

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