French lender Crédit Agricole has formally asked the board of Banco BPM to open negotiations regarding the merger of Crédit Agricole Italia into the Milan-listed Italian institution, according to announcements released from Montrouge.
The friendly proposal, which does not constitute a finalized agreement, envisions a combined financial group centered around Banco BPM that would remain publicly traded on Piazza Affari in Milan, according to Padova24ore.
If successfully completed, the transaction would establish Italy’s third-largest banking group behind Intesa Sanpaolo and UniCredit, Insurance Business reported. The enlarged entity is projected to serve approximately 6.5 million customers through a distribution network comprising more than 2,300 branches.
French bank Credit Agricole has proposed discussions over a possible merger of its Italian business with Italian banking group Banco BPM. https://t.co/X7zyw4WLRO
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Under the terms submitted to Banco BPM, current shareholders would receive an exchange ratio featuring an estimated 20% premium alongside a €1 billion special dividend. Crédit Agricole estimates that the integration would generate pre-tax synergies of €800 million annually. Projections provided by the French group indicate that these factors could lift Banco BPM’s earnings per share by roughly 24% by the year 2027.
Crédit Agricole, which initially began acquiring shares in Banco BPM in 2022, currently holds a 29.6% stake in the bank. Contributing its own Italian banking and insurance operations to the merged structure would elevate its ownership interest to approximately 45% of the resulting company’s capital.
Regarding leadership, current Banco BPM Chief Executive Officer Giuseppe Castagna is slated to run the combined bank as CEO. Hugues Brasseur is designated as chairman, with strategic direction coordinated by Olivier Gavalda, CEO of the parent group Banque Verte. The board of directors would maintain a majority of independent members.
The transaction package also incorporates Crédit Agricole’s broader Italian insurance operations across both life and non-life sectors. This includes asset management and specialist finance functions alongside the French group’s existing insurance holdings.
The integration builds upon an existing partnership established in December 2023, when Crédit Agricole Assurances acquired a 65% stake in Banco BPM’s non-life carriers—Banco BPM Assicurazioni and Vera Assicurazioni—for €243.6 million. That prior agreement established a 20-year distribution pact for property and casualty, personal protection, and creditor cover across Banco BPM branches.
On the life insurance side, Crédit Agricole’s domestic entity, CA Vita, collected approximately €4.2 billion in premiums in 2024 through its 1,000 branches and third-party distributors, bringing the combined life insurance operations to well over €8 billion annually.
The realization of the project remains subject to multiple conditions and approvals. To increase its stake to 45% without triggering a mandatory public tender offer, Crédit Agricole requires Banco BPM investors to approve a whitewash resolution at an extraordinary general meeting, needing support from at least two-thirds of the capital present.
Additional regulatory clearances are required from the European Central Bank and under Italy’s national golden power regulations. Subject to obtaining these mandatory authorizations and shareholder backing, the potential transaction is targeted for completion in the second half of 2027, according to Independent Journal Review.