Crédit Agricole S.A. has asked Banco BPM to explore a combination with Crédit Agricole Italia, a proposal that would give Banco BPM shareholders a €1 billion dividend while keeping the enlarged group listed in Milan.
Crédit Agricole’s proposed share exchange places Banco BPM’s valuation at a 20% premium to the estimated 2027 price-to-earnings benchmark for the businesses it would contribute. The company did not specify an exchange ratio per Banco BPM share.
Crédit Agricole projects €800 million in annual synergies before tax. It says Banco BPM’s earnings per share could be about 24% higher in 2027, based on pretax synergies at run rate; Crédit Agricole’s stake would rise from 29.6% of Banco BPM to about 45% of the combined group through its contributions.
The proposed group would have 6.5 million customers and a network of more than 2,300 branches, Crédit Agricole said, projecting that it would rank third among Italian banking groups without specifying the measure. The plan would also include Crédit Agricole’s Italian life and non-life insurance businesses, put Banco BPM’s current CEO in charge and give independent directors most board seats.
The parties have yet to determine the deal’s legal structure. Banco BPM shareholders would need to approve it at an extraordinary meeting, and regulatory clearances would be required, including from the European Central Bank and under Italy’s “golden power” regime; Crédit Agricole said completion could come in the second half of 2027.
