UniCredit announced plans to begin its buyout offer for Banco BPM on April 28, coinciding with French bank Credit Agricole’s confirmation that it has secured supervisory approval to increase its stake in the Milan-based lender to 19.9%.
Credit Agricole, which became Banco BPM’s largest investor in 2022 by purchasing a 9.2% stake, is now poised to further solidify its position in the bank after obtaining approval from the European Central Bank (ECB). The French group will hold a 19.8% stake in Banco BPM once the transaction is completed, as confirmed by Credit Agricole on Wednesday.
Although Credit Agricole has ruled out making a counterbid for Banco BPM, industry insiders believe that its increased stake presents a significant obstacle to UniCredit CEO Andrea Orcel’s strategic ambitions. Orcel’s plan to acquire Banco BPM has already disrupted the Italian Treasury’s efforts to promote a merger between Banco BPM and state-backed Monte dei Paschi di Siena.
In December, Credit Agricole took steps to fortify Banco BPM’s defense by acquiring derivatives to increase its holding, with the informal backing of the Italian government. The French bank further expanded its stake through additional derivative contracts in the first quarter of this year.
Credit Agricole’s commercial interests are particularly significant in the Italian market, where it is the largest foreign investor. The bank collaborates with Banco BPM in consumer credit and insurance, while its asset management arm, Amundi, has a distribution agreement with UniCredit that is set to expire in 2027.
UniCredit’s planned all-share bid for Banco BPM, valued at €14 billion ($15.11 billion), was given the green light by the ECB last Friday. On Wednesday, Italy’s market regulator, Consob, also approved UniCredit’s share offer document. The offer will be open from April 28 to June 23.
UniCredit’s hostile takeover attempt is part of a broader trend of aggressive bids within Italy’s banking sector, which has recently witnessed record profits due to high interest rates, following a period of major restructuring after the 2008-2012 financial crisis.
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