Banco BPM to Review Credit Agricole Bid, Seeks ‘Adequate Value’

(Bloomberg) -- Banco BPM SpA said it will review Credit Agricole SA’s proposal to combine their Italian banking operations, and said it will seek “adequate value” for shareholders.

The board of directors has given a mandate to Chief Executive Officer Giuseppe Castagna to start talks, according to a Banco BPM statement on Thursday. The board also noted that a tie-up with Credit Agricole, which already owns nearly 30% of the the Italian bank, would take away other opportunities.

“Valuation criteria must reflect the loss of contestability and secure maximum shareholder approval,” the bank said.

Earlier this week, Credit Agricole offered to merge its Italian banking operations with Banco BPM, a deal that would create Italy’s third-largest bank. The French lender said it would own less than 50% in the combined entity and it would remain listed in Milan, with Castagna remaining in charge.

Credit Agricole has sought to reassure the Italian government over the proposed combination, a key stakeholder that has previously shot down banking transactions, Bloomberg News has reported. The bank has indicated it would ensure savings collected in Italy remain invested in the country’s assets, and signaled a willingness to adjust its proposal if needed, people familiar with the matter have said.

Castagna said in August that the industrial rationale for combination with Credit Agricole’s local operations was “very solid.” Since then, BPM was approached by Banca Monte dei Paschi di Siena SpA about a possible merger, an idea rejected by Paschi’s shareholders.

Credit Agricole has said its proposal reflects a 20% premium for Banco BPM and a €1 billion ($1.1 billion) dividend for its shareholders. The French bank estimates that the combination could produce benefits of about €800 million a year.

Banco BPM, which has a market value of about €22 billion, acquired Italian asset manager Anima Holding SpA last year. The unit could be one of the most politically sensitive parts of any potential combination, given Rome’s interest in keeping national savings and investments in domestic hands.

“We have no intention of selling” Anima, a Banco BPM spokesperson said, after Reuters reported that Credit Agricole is open to a divestment after the deal.

--With assistance from Antonio Vanuzzo.

More stories like this are available on bloomberg.com

©2026 Bloomberg L.P.

Catch all the Business News , Corporate news , Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.

✕

Wait for it…

Oops! Looks like you have exceeded the limit to bookmark the image. Remove some to bookmark this image.