Banco BPM shares up on report of UniCredit, Credit Agricole break-up plan
Banco BPM shares up on report of UniCredit, Credit Agricole break-up plan
Banco Bpm SpA (BIT:BAMI) shares rose nearly 2% on Friday after Reuters reported that UniCredit and Credit Agricole had jointly discussed a potential break-up of the Italian lender with authorities, reviving speculation around a tie-up.
Under one scenario, UniCredit would transfer roughly one-third of Banco BPM to Credit Agricole, the report said, citing two people familiar with the matter, speaking on condition of anonymity because the talks are confidential.
The lenders have been examining possible options as Italy’s banking consolidation gathers pace, they said.
Credit Agricole, Banco BPM’s largest shareholder with a 29.3% stake, has opposed a combination between Banco BPM and Monte dei Paschi di Siena.
The French lender has instead backed a tie-up between Banco BPM and its Italian business, although a foreign takeover of Italy’s fourth-largest bank could face political scrutiny ahead of next year’s national election.
UniCredit abandoned its attempt to acquire Banco BPM in 2025, with Credit Agricole’s opposition among the factors that derailed the deal.
Chief Executive Andrea Orcel has since described UniCredit as an "observer" of Italy’s consolidation process, a stance that has not changed, the report said.
UniCredit could also opt out of further domestic M&A and instead seek branches sold by rivals following mergers.
The Italian banking sector remains in flux. Banco BPM has also emerged as a target for Monte dei Paschi, which is seeking to fend off a takeover bid from market leader Intesa Sanpaolo.
Meanwhile, UniCredit has secured almost half of the voting rights in Germany’s Commerzbank after a two-year pursuit, increasing the importance of Germany to its business. In Italy, UniCredit has built a 9% stake in insurer Generali as it maintains a foothold in the domestic market.
Credit Agricole has made Italy its largest foreign market after two decades of expansion. Its CFO Clotilde L’Angevin said on Wednesday the bank was considering different scenarios in Italy and was in a position to protect its interests.