MILAN, April 7 (Reuters) – Credit Agricole CAGR.PA said on Thursday it had taken a 9.2% stake in Italy’s third-largest bank, Banco BPM BAMI.MI.
Banco BPM has been exploring the possibility of a merger for a long time and had already entered into discussions with Crédit Agricole in 2020, without these being successful.
Italy’s second-largest bank UniCredit CRDI.MI had also prepared a takeover bid for Banco BPM but had to suspend it when Russia invaded Ukraine, sources told Reuters.
Credit Agricole said the transaction showed its appreciation for the “strong franchise” that Banco BPM represents, its good financial outlook and its “strong and successful management team”.
The deal “strengthens the strong relationship with Banco BPM”, the French group said, adding that it aimed to extend the reach of its strategic partnerships with the Italian bank, currently focused on consumer credit.
Crédit Agricole has indicated that it has not requested authorization from the supervisory authorities to cross the 10% threshold.
Banco BPM specified in a separate press release that Crédit Agricole’s stake had not been the subject of a prior agreement between the two banks.
“The quality and importance of the investor, as well as the appreciation he expressed for our bank represent a clear recognition of the value and potential of Banco BPM,” the Italian bank said.
(Report Valentina Za and Andrea Mandala; French version Camille Raynaud)