Norway’s Wealth Fund to Oppose MPS’s Italian Banking Deals

Norges Bank Investment Management, the manager of Norway’s Government Pension Fund Global has said it will vote against three deals proposed by the Italian bank Monte dei Paschi di Siena (MPS). This adds pressure on MPS as it tries to reshape its role in Italy’s financial sector.

In a statement released on 24 October 2026 NBIM said it will oppose MPS’s plans to buy Banco BPM and Banca Generali and also the proposed merger of Mediobanca into MPS. These decisions will be voted on at a shareholder meeting set for 29 October.

At the end of December 2025 NBIM owned 2.98% of MPS according to Reuters. That stake doesn’t give the fund control over the Italian bank but its vote still matters. It shows scrutiny of the deals at a key moment.

NBIM’s vote is based on its rules for mergers and acquisitions. These rules say deals should help shareholders earn more and investors must have information to make smart choices. They also want treatment for all shareholders and to avoid conflicts of interest. NBIM didn’t give a breakdown for each deal.

The proposed deals are part of a plan led by MPS’s CEO Luigi Lovaglio. The bank wants to buy Banco BPM and Banca Generali while also changing how it works with Mediobanca. If all go through this would change Italy’s banking and wealth management scene. Several big financial businesses would end up under one restructured group.

The Banco BPM and Banca Generali deals are structured as share swaps. MPS says this will help it compete better and create a financial group.. These kinds of deals are complex. They involve listed companies need shareholder approval and must pass regulatory checks. The way the deals are linked makes the upcoming votes very important.

The Mediobanca deal is separate but connected. The plan is to merge Mediobanca into MPS reorganise the group to keep its special services. Like investment banking and private banking. Alive. MPS says the whole plan will simplify the group and help it meet its strategic goals.

NBIM’s opposition is not alone. Earlier in October proxy adviser Glass Lewis told MPS shareholders to reject the Banco BPM and Banca Generali offers. Other shareholders have also spoken out against parts of the plan. These positions don’t mean the deals will fail. They show MPS can’t count on full support.

The stakes are higher than these deals. MPS has been in a spot in Italy’s banking market. Rival bank Intesa Sanpaolo has made an offer to buy MPS. Intesa says MPS’s plan is too complicated and the expected benefits are unclear. It also warns that its own offer could be affected if MPS shareholders approve parts of the competing plan. That’s Intesa’s point of view. Not proof the plan will fail.

For investors the main focus now is the 29 October shareholder meeting. The votes will decide whether MPS can move forward with its deals and related changes. Even if shareholders approve the deals still need to meet conditions pass regulations and complete all formal steps.

NBIM’s decision also shows how big institutional investors can influence companies. Not by taking control but by voting. Global asset managers often review deals using their own governance rules and look at whether they add value for shareholders. When a big fund like NBIM speaks out it can shake confidence especially when a company is asking for approval on linked deals at once.

One shareholder’s vote won’t stop a deal on its own. The outcome depends on the ownership, how many votes are needed how many people vote and how others vote. NBIM’s 2.98% stake is a signal, but not enough to decide the result.

The next few days will be key. The shareholder meeting on 29 October will show if MPS can move forward with its acquisitions and the Mediobanca merger. Investors will also watch for comments from big shareholders the companies involved and other players in Italy’s banking world.

NBIM’s announcement has added pressure on MPS to win support, for its plan. Whether that pressure changes anything depends on how shareholders vote and the conditions tied to each deal.