Banken: Crédit Agricole will Banco BPM mit Italien-Tochter fusionieren

Italia's latest banking fusion is set to take place as French banking giant Crédit Agricole plans to merge its Italian subsidiary, Banco BPM, with the Milan-based regional bank, Banco BPM. By doing so, Crédit Agricole aims to increase its stake in the Milan-Verona bank from 29.6 percent to 45 percent, according to a statement made on Monday.

The combined entity would then become Italy's third-largest bank, following Intesa Sanpaolo and Unicredit. Giuseppe Castagna, Banco BPM's CEO, is expected to lead the newly formed institution.

To entice the remaining Banco BPM shareholders, Crédit Agricole is offering a €1 billion special dividend. The merger will also bring about €800 million in synergies, the French bank revealed. Initially, the north Italian regional bank had targeted Banca Monte dei Paschi (MPS), which it sought to prevent from being taken over by Intesa. The Italian government in Rome viewed MPS as a key player in this scenario. However, MPS shareholders halted the takeover plans at an extraordinary general meeting in late October.

The French government's reaction to these plans remains unclear. It retains the right to intervene in mergers and acquisitions deemed strategically important. Banco BPM has shown a history of acquisition ambitions, having previously faced a €10 billion takeover offer from Unicredit, which was later withdrawn. Crédit Agricole has been on an acquisition spree across Europe, seeking to lessen its dependence on its French retail business. In Germany, the French are currently eyeing the Düsseldorf-based middle-stand bank IKB.