Italian Prime Minister Giorgia Meloni moved forward with her plan to use the privatization of Banca Monte dei Paschi di Siena SpA to promote domestic banking consolidation as the latest share sale saw several national firms buy major stakes.

A possible new force in Italian banking has begun to take shape, after regional lender Banco BPM SpA took a major stake in rival Banca Monte dei Paschi di Siena SpA.

Italy has begun to pave the way for a third big banking group in the country by selling a chunk of state-owned Monte dei Paschi di Siena (MPS) to rival Banco BPM and the fund manager partner of both lenders.

Banco BPM, a major Italian bank, has acquired a 5% stake in MPS, aligning with its strategy while maintaining a standalone approach.

Italy is selling a 7% stake in Monte dei Paschi di Siena SpA, the latest step in an exhaustive restructuring drive that dates back to 2017.

Italy on Wednesday raised 1.1 billion euros ($1.16 billion) by selling 15% of bailed-out bank Monte dei Paschi di Siena , bringing on board rival Banco BPM as a shareholder in the Tuscan lender.

Shares in Monte dei Paschi di Siena jumped 9 per cent in early trading on Thursday after the Italian government sold a 15 per cent stake in the bailed-out lender for €1.1bn, bringing in rival Banco BPM as a shareholder.

Investing.com - Shares in Banca Monte dei Paschi di Siena (BIT: BMPS) surged after Italy sold 15% of its stake in the bailed-out lender, raising 1.1 billion euros ($1.16 billion).

Italian state-controlled bank Monte dei Paschi di Siena on Friday hiked its profit goal for the year after reporting a larger than expected 31% yearly rise in third quarter income.

The Italian government cut its shareholding in Banca Monte dei Paschi di Siena by 15% allowing peers Banco BPM and Anima Holding to buy a stake in the world’s oldest bank.

Giorgia Meloni’s government sold a minority stake in Banca Monte dei Paschi di Siena SpA to rival Banco BPM SpA, a move aimed at bolstering the Italian shareholder base of the world’s oldest bank.