Banco Popolare and BPM shareholders voted on Saturday to merge under an accord that will create Italy's third-largest lender and consolidate the country's troubled banking sector.

As expected, the "yes" vote won easily at Banco Popolare, with over 23.000 votes in favour to 118 against, while at Banca Popolare di Milano (BPM), where the ballot was expected to be tighter, 7,315 shareholders supported the tie-up while 2.731 voted against.