Italian banking giant Monte Paschi di Siena and financial services group Mediobanca have reached a definitive agreement on the terms of their long-anticipated merger. The deal, expected to finalize by year-end, will result in the delisting of Mediobanca from the Milan Stock Exchange. This consolidation significantly reduces competition within Italy's banking sector, creating a larger, more diversified financial institution.

The merger aims to combine Monte Paschi's retail banking network with Mediobanca's investment banking and wealth management expertise, potentially enhancing their competitive position against larger European peers.