In brief

• Crédit Agricole has proposed a merger with Banco BPM involving its Italian subsidiary.
• The proposal is said to include a 20% premium for shareholders and an extraordinary dividend of €1 billion.
• Completion of the transaction was planned for the second half of 2027, subject to regulatory approvals.

Merger proposal

The board of directors of Crédit Agricole has proposed merging its Italian subsidiary with Banco BPM, the French bank announced on Monday in an official statement (Credit Agricole propone le nozze a Bpm, ai soci 1 miliardo e premio del 20% – ANSA) (Crédit Agricole propone la fusión de su filial italiana con BPM para crear el tercer mayor banco del país – 20minutos.es). The move is said to be another step in the consolidation of the Italian banking sector. According to press reports, Crédit Agricole has pursued this strategy for years, gradually strengthening its position in the country after acquiring a stake in Cariparma and buying smaller banks (Crédit Agricole-Banco BPM : pourquoi les fusions bancaires sont une urgence en Europe – lesechos.fr).

Terms of the offer

As reported by the agency ANSA, the proposal would include a premium for shareholders and the payment of an extraordinary dividend. According to the same sources, Crédit Agricole's stake in Banco BPM would rise from the current 29.6% to 45% of the capital.

Timeline

Completion of the transaction is scheduled for the second half of 2027, subject to obtaining the required regulatory approvals.

Market context

The acquisition comes at a time when European banks are considering larger combinations to face growing competition and new threats. UniCredit is taking similar steps toward Commerzbank in Germany, although its strategy is different: more confrontational (Neuer Bankriese geplant: Crédit Agricole greift nach BPM in Italien – FAZ.NET).