Crédit Agricole has increased its stake in Banco BPM from 9.9% to 15.1%, with plans to seek ECB approval to raise it further to 19.99%. The move comes amid intensified competition following UniCredit’s bid for Banco BPM, which complicates the government’s merger plans with Monte dei Paschi di Siena. Crédit Agricole has received informal support from the Italian government and aims to strengthen its position in Italy, its key market outside France.
Crédit Agricole Boosts Stake in Banco BPM Amid Italian Banking Turmoil
According to sources familiar with the situation, Crédit Agricole has secured informal backing from the Italian government prior to its announcement on Friday regarding an increase in its stake in Banco BPM. This move heightens the competitive landscape within Italy’s banking sector.
The Battle for Banco BPM and Market Dynamics
The conflict intensified last month when UniCredit made a public bid for Banco BPM, disrupting the government’s intentions to facilitate a merger between Banco BPM and Monte dei Paschi di Siena. Crédit Agricole has opted not to comment on this development.
On Friday, the French banking giant revealed it has raised its stake from 9.9% to 15.1% in Banco BPM through the use of derivative instruments, while clarifying that it is not pursuing a public offer for the entire capital. The bank is now seeking approval from the European Central Bank (ECB) to push its stake further to 19.99%.
Sources, who requested anonymity, indicated that Crédit Agricole had previously communicated with Italian Prime Minister Giorgia Meloni’s office and received informal approval for its plans.
In a bid to fortify its negotiating leverage and protect its business interests in Italy—its primary market outside France—a source familiar with Crédit Agricole’s strategy stated that the bank is keen on solidifying its position within the competitive landscape.
Having become the leading shareholder of Banco BPM in 2022 following UniCredit’s unsuccessful attempt at a takeover, Crédit Agricole maintains partnerships with Banco BPM in the consumer credit and insurance sectors. Additionally, its asset management subsidiary, Amundi, holds a distribution agreement with UniCredit that is set to expire in 2027.
Crédit Agricole has been active in Italy since 1972, enjoying consistent growth primarily through smaller acquisitions. Officials in Rome have previously assured that the bank would follow a cautious strategy, avoiding overly aggressive moves to expand its market presence. This approach appears to remain unchanged, according to one source.
For Crédit Agricole to further expand its stake in Banco BPM, it requires the green light from both the Italian government and the ECB. The Italian government has the authority to block or impose conditions on acquisitions in critical sectors such as energy, telecommunications, and banking. This means the government plays a crucial role in overseeing shareholdings of strategic companies listed on the Milan Stock Exchange, particularly when specific ownership thresholds are crossed.
In light of these developments, UniCredit’s CEO, Andrea Orcel, emphasized the urgency for his group to remain competitive, especially as the consolidation process within Italy’s banking sector accelerates. Just before UniCredit launched its low-premium offer, Banco BPM had decided to acquire the fund manager Anima Holding and invest in Monte dei Paschi.