Crédit Agricole Proposes Merger with Banco BPM in Italy
The deal aims to create the country's third-largest bank to boost scale and financial resilience.
French lender Crédit Agricole has submitted a formal proposal to merge its Italian operations with Banco BPM. The primary goal is to consolidate a larger financial group and expand service offerings in the local market.
The deal structure ensures that the resulting entity will remain listed on the Milan Stock Exchange. Crédit Agricole plans to increase its current 29.6% stake to approximately 45% of the newly formed group.
The project expects to serve 6.5 million customers through a network of 2,300 branches. It aims to generate 800 million euros in annual synergies and boost Banco BPM's earnings per share by 24% by 2027.
For Banco BPM shareholders, the offer includes a 20% premium on the share price. A special dividend distribution of 1 billion euros is also planned.
The transaction is expected to close in the second half of 2027. The Banco BPM board must still evaluate the terms presented by the French institution.
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