Crédit Agricole has proposed talks on merging Crédit Agricole Italia with Banco BPM, in a combined group that would be built around Banco BPM and remain listed in Milan. Crédit Agricole said the deal would create Italy's third-largest banking group, serving 6.5 million customers through more than 2,300 branches.
Banco BPM shareholders would receive an exchange ratio reflecting a 20% premium and an extraordinary dividend of €1 billion, while Crédit Agricole's holding would rise from its current 29.6% stake to approximately 45% of the combined entity. Banco BPM shares rose 10% on Monday after the proposal was announced.
TERMS AND CONDITIONS
The friendly proposal has been submitted to Banco BPM's board. The combined entity's board would continue to have a majority of independent members, and Banco BPM chief executive Giuseppe Castagna would lead the merged group. Crédit Agricole Italia brings 12,400 employees and 1,000 branches serving 2.9 million customers.
Among other conditions, a merger would need the approval of Banco BPM's extraordinary general meeting, with a majority of at least two-thirds of the capital represented and the so-called whitewash majority that would exempt Crédit Agricole from a mandatory tender offer, as well as clearance from the ECB and under Italy's golden power rules. Completion could come in the second half of 2027.
A GROWING STAKE
Crédit Agricole first entered Banco BPM's capital with a stake of nearly 10% in 2022 and has gradually raised it to nearly 30%; it is already the largest shareholder with 29.6%. Banco BPM operates around 1,400 branches, serves 3.6 million clients and employs approximately 19,000 staff.
On 5 November Castagna said a new transaction could emerge after Monte dei Paschi shareholders rejected a plan, and that a deal with Crédit Agricole was a possibility Banco BPM would evaluate, Reuters reported. Rome has long favoured a third national banking group able to challenge Intesa Sanpaolo and UniCredit.
Consob has meanwhile approved Intesa Sanpaolo's offer document for Monte dei Paschi di Siena, with the acceptance period starting on 24 November and the offer due to close on 22 January 2027.
THE TGB VIEW
In the TGB Bank Rankings for Europe, ranked by total assets in US$ billions, Banco BPM is 41st with US$241.9 billion at December 2025, in the mid-sized Italian tier that the TGB market profile places alongside Monte dei Paschi and BPER Banca, behind Intesa Sanpaolo and UniCredit with more than US$1tn each. Banco BPM's 13.4% return on equity was more than double the 5.9% of the wider Crédit Agricole Group, which ranks third in Europe. The next dated step in Italy's consolidation is Intesa Sanpaolo's offer for Monte dei Paschi, which opens on 24 November, while this deal could complete in the second half of 2027.
Related: Crédit Agricole Group quarterly profit rises 28.2% to €2,780 million
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