Italy post office ends commercial deal with Mediolanum unit

The Italian post office decided to relinquish a commercial agreement with Mediolanum SpA’s unit Banca Mediolanum, the daily MF said without giving a source.

The deal signed in 2004 enables Banca Mediolanum clients to use most of the post office’s more than 14,000 outlets for financial operations, it said.

Industry sources said the notice of cancellation of the contract is a routine procedure ahead of the contract expiry, and will trigger negotiations on a renewal of the contract under revised terms.

This renegotiation is an automatic procedure that is launched 2-4 months ahead of the contract expiry, they said, without giving a specific timetable.

‘It has been done to change the conditions. It is normal,’ one source said.

The contract is not exclusive between the post office and Mediolanum and other companies can set up similar arrangements with the post for their customers to deposit and withdraw funds, he said.

Mediolanum declined to comment.