Crédit Agricole has proposed merging its Italian banking business with Banco BPM, a combination the French lender says would create Italy’s third-largest banking group and deepen its role in the consolidation wave reshaping the country’s financial sector.
The proposal, announced on Monday, would fold Crédit Agricole Italia — along with the French group’s Italian life and non-life insurance businesses — into the Milan-listed Banco BPM, which would remain the listed vehicle for the enlarged group. Crédit Agricole, which already holds a 29.6% stake in Banco BPM, would lift its ownership to roughly 45% of the combined company.
Under the terms set out by Crédit Agricole, Banco BPM shareholders would receive an exchange ratio reflecting a 20% valuation premium, plus an extraordinary dividend of €1 billion, equivalent to about $1.1 billion. The French bank puts annual pre-tax synergies at around €800 million and estimates the deal would lift Banco BPM’s earnings per share in 2027 by about 24%. Those are the proposer’s own projections, not completed savings.
The combined lender would serve about 6.5 million customers through more than 2,300 branches, sitting behind Intesa Sanpaolo and UniCredit in the Italian market. Banco BPM chief executive Giuseppe Castagna would lead the enlarged group, and the combined business would stay listed in Milan with a majority-independent board.
Crédit Agricole described the approach as friendly and said it had submitted the proposal to Banco BPM’s board for evaluation. Banco BPM said its board would meet on 12 November for a preliminary assessment, and the bank has not yet publicly commented on the terms. Reuters reported that Crédit Agricole briefed the Italian government before going public with the plan.
The deal is far from done. It would need approval from Banco BPM shareholders at an extraordinary meeting, including the two-thirds majority required for a procedure that would exempt Crédit Agricole from launching a mandatory takeover offer, as well as authorisation from the European Central Bank and clearance under Italy’s “golden power” regime for strategic assets. Crédit Agricole said the transaction could be completed in the second half of 2027 if those hurdles are cleared.
Investors welcomed the news: Banco BPM shares rose by more than 10% on Monday, while Crédit Agricole’s stock was little changed. The proposal is the latest move in a fast-moving round of Italian banking deals, and Crédit Agricole’s stakebuilding — it first bought 9.18% of Banco BPM in 2022 and crossed 25% earlier this year — has long fuelled speculation that a full combination was coming.
Sources: Reuters, https://www.reuters.com/business/finance/banco-bpm-board-begin-assessing-credit-agricole-merger-proposal-november-12-2026-11-09/ and https://www.reuters.com/commentary/breakingviews/italy-reaps-awkward-payoff-bank-meddling-2026-11-09/ ; Crédit Agricole press release, https://www.tradingview.com/news/globenewswire:df0b58461094b:0-credit-agricole-sa-cr-dit-agricole-proposes-to-banco-bpm-to-create-together-a-new-leading-italian-bank/
