Crédit Agricole proposes merging Crédit Agricole Italia with Banco BPM

Crédit Agricole has proposed merging its Italian subsidiary, Crédit Agricole Italia, into Banco BPM, in a proposal it calls friendly and has submitted to Banco BPM's board. The exchange ratio reflects a 20% valuation premium, and Banco BPM's existing shareholders would receive a €1 billion extraordinary dividend. Crédit Agricole already holds 29.6% of Banco BPM and would raise its stake in the combined bank to about 45%.

Banco BPM CEO Giuseppe Castagna would lead the merged group, which would rank third in Italy behind Intesa Sanpaolo and UniCredit. Crédit Agricole estimates about €800 million in annual revenue gains and cost savings and a rise of about 24% in Banco BPM's 2027 earnings per share.

The plan needs a whitewash procedure at an extraordinary general meeting, golden power clearance from the Italian government, and banking and competition approvals. Completion is expected in the second half of 2027. Banco BPM and Italy's Treasury declined to comment.