Crédit Agricole proposes merging its Italian unit with Banco BPM, offering a 20% premium and a €1 billion dividend

In brief

• Crédit Agricole has proposed merging its Italian unit with Banco BPM to create Italy's third-largest bank.
• The offer includes a 20% premium and an extraordinary €1 billion dividend.
• If approved, Crédit Agricole's stake in Banco BPM would rise from 29.6% to 45%, with closing expected in the second half of 2027.

The proposal and its terms

Crédit Agricole's board has put forward a merger proposal to Banco BPM involving its Italian subsidiary, the French bank said on Monday in an official statement (Crédit Agricole propone la fusión de su filial italiana con BPM para crear el tercer mayor banco del país – 20minutos.es) (Crédit Agricole Proposes Merger of Italian Business With Banco BPM – WSJ). The move is part of a wider push toward consolidation in Italian banking (Credit Agricole proposes merging local unit with Banco BPM – theedgesingapore.com) (Credit Agricole pitches Banco BPM tie-up in Italy banking shake-up – Reuters).

The offer includes a 20% premium on the transaction and a one-off dividend of €1 billion. Crédit Agricole currently holds 29.6% of Banco BPM. If the deal goes ahead, its stake would rise to 45% of the capital.

Scope and timing

The French bank describes the combination as a way to create Italy's third-largest banking group (Crédit Agricole-Banco BPM : pourquoi les fusions bancaires sont une urgence en Europe – lesechos.fr) (Crédit agricole ambitionne de créer le troisième groupe bancaire d’Italie – Le Monde). Closing is expected in the second half of 2027, subject to the necessary regulatory approvals.

Background

Crédit Agricole has been building its Italian presence for about two decades, starting with a stake in Cariparma during the Intesa Sanpaolo merger and then buying smaller regional lenders. Its approach contrasts with UniCredit's more confrontational strategy in Germany, where it has pursued a hostile bid for Commerzbank.

Italian Economy Minister Giancarlo Giorgetti and Prime Minister Giorgia Meloni are among the government figures following the process. The Italian press has described the proposal as friendly in tone (Credit Agricole, proposta a Banco Bpm 'è amichevole' – ANSA).