Italian bank Monte dei Paschi di Siena has announced it is launching a 13.3 billion euro takeover bid for larger peer Mediobanca in a surprise move that could reshape the country’s banking sector.

The surprise move is the latest amid a wave of consolidation in the country’s banking industry in recent months and would create Italy’s third largest entity in the sector.

Italy’s bailed-out Monte dei Paschi di Siena on Friday launched a 13.3 billion euro all-share takeover offer for larger domestic peer Mediobanca.