France's Crédit Agricole has proposed a merger between its Italian operations and Banco BPM that would create Italy's third-largest banking group. The proposal, announced on Monday, offers Banco BPM shareholders a 20 per cent premium based on the bank's year-end valuation through a share exchange, alongside a €1 billion extraordinary dividend. A deal would result in Crédit Agricole increasing its stake in Banco BPM to about 45 per cent, up from 29.6 per cent today.
The combined bank would remain listed in Milan, with Banco BPM's current chief executive Giuseppe Castagna retaining his position. Crédit Agricole projects the combination would yield synergies of €800 million and complete in the second half of 2027. The French lender's move comes after Monte dei Paschi di Siena shareholders rejected a takeover of Banco BPM last month.
Banco BPM walked away from a proposed merger of equals with the Tuscan lender over the summer.
Source: Financial Times Companies · Summarized by HeadlinesBriefing