Crédit Agricole has increased its stake in Banco BPM from 9.9% to 15.1%, with informal support from the Italian government. This move intensifies competition in Italy’s banking sector, especially following UniCredit’s recent takeover bid for Banco BPM. Crédit Agricole aims to secure a further increase to 19.99% and has established partnerships with Banco BPM since becoming its primary shareholder in 2022. Government and ECB approvals are necessary for further stake enhancements, as regulations govern strategic company shareholding.
Crédit Agricole Gains Ground in Banco BPM
According to sources familiar with the situation, Crédit Agricole has received tacit backing from the Italian government prior to its announcement on Friday regarding an increase in its stake in Banco BPM.
This strategic move by Crédit Agricole heightens the current competition in Italy’s banking landscape. The rivalry escalated recently when UniCredit made a public takeover offer for Banco BPM, disrupting the Italian government’s plans to merge Banco BPM with Monte dei Paschi di Siena.
When approached for comments, representatives from Crédit Agricole chose not to respond.
On Friday, the French banking giant confirmed that it had raised its stake in Banco BPM from 9.9% to 15.1% via derivative instruments, clarifying that it is not pursuing a public takeover of the entire company. Additionally, Crédit Agricole is seeking authorization from the European Central Bank (ECB) to boost its stake to 19.99% in Banco BPM.
Strategic Positioning in the Italian Market
Sources, speaking on condition of anonymity, revealed that Crédit Agricole had made the Italian Prime Minister Giorgia Meloni’s office aware of its intentions beforehand and had received her informal consent.
Furthermore, insiders indicated that Crédit Agricole is aiming to fortify its negotiating stance to safeguard its business interests in Italy, which represents its most significant market outside of France.
Having become the primary shareholder of Banco BPM in 2022 following UniCredit’s unsuccessful takeover attempt, Crédit Agricole has established partnerships in the consumer credit and insurance sectors with Banco BPM. Notably, its asset management arm, Amundi, has a distribution agreement with UniCredit set to expire in 2027.
Since entering the Italian market in 1972, Crédit Agricole has witnessed consistent growth, partly through smaller acquisitions. Officials in Rome previously stated that the bank has consistently assured the government about its strategy, avoiding overly aggressive maneuvers to expand its market share. This approach remains unchanged, according to one source.
To further increase its stake in Banco BPM, Crédit Agricole requires approval from both the Italian government and the ECB. The Italian government holds the authority to block or impose conditions on acquisitions in critical sectors such as energy, telecommunications, and banking.
Under these regulations, the government can intervene in the shareholding of strategic companies listed on the Milan Stock Exchange when specific participation thresholds are met.
UniCredit’s CEO, Andrea Orcel, emphasized that his group cannot afford to be sidelined as the consolidation of the banking sector in Italy gains momentum. Just days prior to UniCredit’s bid, Banco BPM announced its acquisition of the fund manager Anima Holding and its intention to invest in Monte dei Paschi.
Reporting by Giuseppe Fonte in Rome and Valentina Za in Milan; French version by Claude Chendjou, edited by Kate Entringer.