Crédit Agricole has proposed folding its Italian banking and insurance operations into Banco BPM to create Italy's third-largest banking group, the French lender said on 9 November 2026, in a friendly approach that would raise its stake in the Milan-listed bank to about 45% from 29.6%.
Why Crédit Agricole S.A. is buying Banco BPM S.p.A. (merger with Crédit Agricole Italia)
Crédit Agricole said the combined group would serve 6.5 million customers through more than 2,300 branches and would include its Italian life and non-life insurance businesses. It described the proposal as a natural extension of the long-term partnership between the two groups, with Banco BPM's identity and operational autonomy preserved, a board with an independent majority and Banco BPM's current chief executive leading the combined entity.
Deal terms and financing
Banco BPM shareholders would receive an exchange ratio reflecting a 20% premium, measured against the 2027 estimated price-to-earnings multiple used to value Crédit Agricole's contributed businesses, and a €1bn extraordinary dividend. Crédit Agricole estimates pre-tax synergies of €800m a year and about 24% accretion to Banco BPM's earnings per share in 2027. The legal structure is still to be agreed, and no headline value was given; Banco BPM was worth about €22.4bn after its shares jumped on the news, according to FactSet data cited by Dow Jones.
Regulatory approvals and timing
The merger would require approval at Banco BPM's extraordinary meeting under the whitewash procedure, which would exempt Crédit Agricole from a mandatory tender offer, as well as ECB authorisation and clearance under Italy's golden power rules. Crédit Agricole said the transaction could be completed in the second half of 2027.
Market context
The proposal follows a run of failed attempts at consolidation involving Banco BPM: Monte dei Paschi's shareholders rejected its plan to acquire the bank in October 2026, and in 2025 UniCredit dropped its bid after the government imposed conditions. Crédit Agricole Italia has 12,400 employees and 1,000 branches serving 2.9 million customers.
