Crédit Agricole proposes merger with Banco BPM Italy
Banco BPM has received a merger proposal from Crédit Agricole for its Italian subsidiaries, aiming to form Italy’s third-largest banking group. The new entity would cater to roughly 6.5 million clients through over 2,400 branch locations.
Crédit Agricole Italia would contribute 2.9 million customers and 1,000 branches, while Banco BPM would bring 3.6 million customers and 1,400 locations. The merged institution would be led by Banco BPM’s current CEO Giuseppe Castagna and would remain listed on the Milan stock exchange.
The terms of the proposal include an exchange ratio reflecting a 20% premium for Banco BPM shareholders, along with an extraordinary dividend payment of €1 billion. The proposed merger is projected to generate around €800 million in synergies and would encompass Crédit Agricole’s Italian insurance businesses, covering both life and non-life operations.
The deal would represent a natural extension of the long-term partnership between Banco BPM and Crédit Agricole, according to the French banking group. As part of the proposal, Crédit Agricole intends to increase its current Banco BPM shareholding from 29.6% to approximately 45% of the combined entity.
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Crédit Agricole initially acquired a 9.18% stake in Banco BPM in 2022, gradually building up that position to cross the 25% threshold and reach its current 29.6% share in July of this year. Crédit Agricole Italia accounted for 20% of the group’s net income share in the first half of 2026.
Over the past decade, the Italian division has issued 300,000 mortgage loans totaling €37 billion, along with €68 billion in customer loans. The proposal represents the latest in a series of moves aimed at scaling Crédit Agricole’s European operations.
For Banco BPM, the potential merger comes amid a wave of proposed combinations within the Italian banking sector. In June, Banco BPM approached Monte dei Paschi di Siena about a possible merger, but the effort was quickly cut short when Intesa Sanpaolo launched a €32.5 billion bid for Monte dei Paschi di Siena.
As of now, Banco BPM has not publicly commented on the Crédit Agricole proposal. They estimate the proposed merger to be completed in the second half of 2027, according to Crédit Agricole. It is expected that the combined entity will continue to operate under the leadership of Giuseppe Castagna, with Crédit Agricole holding a significant stake in the company.
