Credit Agricole Boosts Stake in Banco BPM Amid Takeover Uncertainty

A new development has emerged in the ongoing situation surrounding Banco BPM. While Unicredit awaits a ruling regarding its acquisition attempt, Crédit Agricole is increasing its investment in the Italian bank.

French Bank Seeks to Increase Stake

Crédit Agricole has announced its intention to seek authorization from the European Central Bank to increase its stake in Banco BPM beyond 20%. The French group currently holds 19.8% of the Italian bank. However, Crédit Agricole insists it does not want to “acquire control over Banco BPM,” and intends to remain below the threshold requiring a mandatory takeover bid.

Underlying Motivations

Sources suggest Crédit Agricole’s move is motivated by technical considerations. The increased stake would serve to “prevent the volatility of the BancoBPM shares from having an impact on the budget” of the parent company. The bank purportedly has no desire to appoint a representative to the Banco BPM board.

Impact on Unicredit’s Ambitions

Even below 30%, Crédit Agricole’s increased stake significantly impacts Unicredit’s takeover prospects. This holds true regardless of whether Unicredit CEO Andrea Orcel launches another bid, something he has repeatedly dismissed. Unicredit‘s goal of reaching 66% ownership and fully integrating Banco BPM could be complicated by Crédit Agricole potentially reaching 29% of the capital.

As of 2023, foreign investors held approximately 35% of the Italian banking sector’s shares, indicating a significant international interest in Italian financial institutions (Banca d’Italia 2023).

Shareholder Disapproval

Regarding Unicredit’s offer for Banco Bpm, Massimo Tononi, president of the Milanese bank, stated: “In substance, it seems to me that we are talking about a completely unsatisfactory offer. The shareholders have understood that there are no memberships.”