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ECB Nears Approval for Credit Agricole's Banco BPM Stake Hike
11 Jan
Summary
- ECB close to approving Credit Agricole's bid to increase its stake.
- Conditions include limiting Credit Agricole's board representatives.
- Stake increase to 29.9% planned in two phases by April.
The European Central Bank is reportedly close to granting conditional approval for Credit Agricole's significant stake increase in Italian lender Banco BPM. This potential approval marks a crucial step in the French bank's strategy to deepen its presence within the Italian financial sector.
If cleared by the ECB, Credit Agricole plans to raise its shareholding in Banco BPM to 29.9% through a two-stage process, with completion anticipated by April. The ECB's conditions are expected to focus on Banco BPM's governance, likely limiting Credit Agricole's board representation to seven members. This measure aims to preempt any perception of a de facto takeover and mitigate potential conflicts of interest.
This development comes after Banco BPM faced a previous unsuccessful takeover bid from UniCredit. Credit Agricole, already a major shareholder with over 20% and a commercial partner, has been exploring this expansion with the assistance of financial advisors. The proposed stake increase is slated for completion before Banco BPM's April meeting to approve its 2025 results and elect a new board.
