Banco BPM to review Credit Agricole merger proposal

Banco BPM's board will examine a merger proposal from Credit Agricole during a meeting on Thursday, the Italian lender announced on Monday. Credit Agricole is proposing a potential merger between BPM and BPM's Italian operations, Credit Agricole Italia. The proposal includes Credit Agricole's controlling interest in its Italian life and nonlife insurance businesses.

Credit Agricole intends to combine its Italian banking and insurance operations into BPM. In return, Credit Agricole would pay a €1 billion ($1.12 billion) dividend to BPM shareholders for a stake of approximately 45% in the combined entity. Currently, Credit Agricole holds a 29.6% stake in BPM. The board will receive an initial briefing on the proposal during Thursday's meeting.