Crédit Agricole proposes merger of Italian unit with Banco BPM to create third-largest Italian bank

Crédit Agricole announced on Monday that it has proposed to Banco BPM a merger between the Italian bank and Crédit Agricole’s Italian subsidiary, with the combined entity to remain listed in Milan and become Italy’s third-largest bank.

Under the proposal, Crédit Agricole’s stake would rise from 29.6 percent to about 45 percent. The offer includes an exchange ratio reflecting a 20 percent valuation premium and a 1 billion euro extraordinary dividend for Banco BPM’s current shareholders. Banco BPM CEO Giuseppe Castagna would lead the merged group.

Expected annual synergies are estimated at 800 million euros, and the deal could close in the second half of 2027 subject to shareholder and regulatory approvals, including Italian golden-power rules.

The company’s press release and Reuters reporting confirm the exact terms, premium, dividend and stake increase. No independent financial analysis was available at announcement, but the figures match the issuer’s statement.

The proposal follows earlier failed Italian banking consolidation talks and continues Crédit Agricole’s expansion beyond its home market. Banco BPM’s board will evaluate the offer. Success would reshape Italy’s banking sector; rejection or regulatory blocks remain possible.

Next steps are the Italian bank’s response and any regulatory feedback in the coming weeks.