Intesa Faces More Branch Sales to Secure Italy’s Approval for MPS Deal

Citing Italian newspaper la Repubblica, Reuters reported that the antitrust authority had largely accepted Intesa’s proposed remedies, with a relatively limited number of further branch disposals required before the transaction could receive final clearance.

The development represents an important step for Intesa as it seeks to complete one of Italy’s most consequential banking transactions, a deal that could significantly alter the competitive landscape of the country’s financial sector.

According to Reuters, the regulator has communicated its final assessment to the companies involved, establishing a path toward conditional approval. A formal decision is expected before the anticipated November 23 or 24 opening of the tender period for Intesa’s takeover offer.

Additional Divestitures to Address Competition Concerns

The remaining regulatory requirements center on Intesa’s branch network following its proposed combination with MPS.

According to la Repubblica, as cited by Reuters, Intesa would need to sell several dozen additional MPS branches beyond those already earmarked for disposal under an agreement with Italian insurer Unipol.

The existing arrangement forms a central part of Intesa’s strategy for reducing the competitive impact of the acquisition. The bank previously agreed to transfer approximately 635 MPS branches to Unipol, which plans to combine the operations with those of BPER Banca, according to earlier Reuters reporting.

The additional sales would further limit the combined group’s retail banking presence in areas where overlapping branch networks could raise competition concerns.

Related: Intesa CEO Confident of Antitrust Clearance for €34 Billion Monte dei Paschi Bid

While the precise number of extra branches has not been finalized in the November 6 report, the relatively modest scale of the proposed adjustments suggests that the regulator’s remaining objections may be manageable without a fundamental restructuring of the transaction.

Generali Holdings Remain a Key Regulatory Issue

Beyond retail banking, the proposed takeover has raised questions about Intesa’s potential influence over Assicurazioni Generali, one of Europe’s major insurance groups.

According to Reuters, the Italian competition authority has accepted Intesa’s commitment to dispose of a 3% holding in Generali that the bank had previously acquired as part of its defensive strategy.

At the same time, the regulator would permit Intesa to retain the 13.3% interest in Generali that it stands to acquire indirectly through MPS and its subsidiary Mediobanca, la Repubblica reported.

That distinction could allow Intesa to preserve a significant financial investment in the insurer while addressing concerns about its ability to influence a competitor in the insurance market.

The proposed safeguards also extend to corporate governance. According to the Reuters account, directors nominated by Intesa to Generali’s board would be required to operate independently, a condition designed to prevent commercially sensitive information from passing between the two financial groups.

These provisions reflect the complexity of the proposed acquisition, which would extend Intesa’s interests beyond conventional banking into insurance and investment activities.