Credit Agricole Proposes Merger of Italian Business With Banco BPM — Update

By Dominic Chopping

French bank Credit Agricole said Monday that it has proposed discussions over a possible merger of its Italian business with Italian lender Banco BPM, aimed at creating a broader financial group offering increased scale, services and resilience.

Credit Agricole said the proposal, which has been submitted for evaluation by the Banco BPM board, would see a combined business built around Banco BPM, which would remain listed in Milan.

The French bank would increase its 29.6% stake in Banco BPM to roughly 45% of the combined entity, it said.

It added that a combination would create Italy's third-largest banking group, serving 6.5 million customers through more than 2,300 branches, broadening their growth prospects through a strong national presence and increased financial strength.

"The combined entity would be an Italian fully integrated financial services group, with enhanced capabilities to invest, innovate, and serve individuals, professionals, agricultural operators, and enterprises," Credit Agricole said in a statement.

"It would benefit from the contribution of Credit Agricole's Italian insurance businesses, both life and non-life."

For the shareholders of Banco BPM, the proposal provides for an exchange ratio that reflects a 20% premium from its stock value, in addition to the payment of an extraordinary dividend of 1 billion euros ($1.11 billion) to Banco BPM's current shareholders, Credit Agricole said. Banco BPM shares closed at 13.45 euros on Friday.

Expected synergies are estimated at 800 million euros a year, while Banco BPM's earnings per share would increase by an estimated 24% in 2027, the French bank added.

The transaction proposed to Banco BPM could be completed in the second half of 2027.

Banco BPM didn't immediately respond to a request for comment.

Write to Dominic Chopping at dominic.chopping@wsj.com

(END) Dow Jones Newswires

November 09, 2026 02:25 ET (07:25 GMT)