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.

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.

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.

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

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.