Crédit Agricole’s recent move to increase its stake in Banco BPM could complicate UniCredit’s acquisition efforts. Banco BPM shares surged by over 2% on Monday, marking the highest rise since January 2016. This followed Crédit Agricole’s announcement late last week that it would raise its stake in Banco BPM.
The French bank stated on Friday that it began proceedings to lift its ownership in Banco BPM from 9.9% to 15.1%. However, this move is subject to approval from Italian regulators. Crédit Agricole clarified that it does not intend to launch a tender offer for Banco BPM shares. This suggests that the French bank does not plan an immediate large-scale takeover, even though it is currently Banco BPM’s largest investor.
UniCredit’s €10.1bn Bid for Banco BPM Faces Resistance
Crédit Agricole’s announcement follows an unsolicited €10.1bn bid from UniCredit for Banco BPM last month. Banco BPM rejected this offer, claiming it undervalued the company. The Italian lender also expressed concerns about potential job losses, reduced competition, and UniCredit’s expansion in Germany.
UniCredit’s increased stake in Germany’s Commerzbank has faced strong opposition in Berlin. Banco BPM argued that a UniCredit takeover could expose its stakeholders to risks tied to UniCredit’s German expansion. Furthermore, the Italian government has indicated that it might block the takeover if it isn’t in the national interest.
In contrast, the Meloni government has informally approved Crédit Agricole’s plan to raise its stake in Banco BPM, according to Reuters sources.
Banco BPM’s Growth Strategy and Possible Merger with MPS
Banco BPM has also been focusing on its growth strategy. In November, it launched an offer to buy asset manager Anima Holding to diversify its revenue streams amid falling interest rates. There have also been rumors of a possible merger with Monte dei Paschi di Siena (MPS), after Banco BPM acquired a 5% stake in MPS.
Such a merger could strengthen Banco BPM’s position to compete with Italy’s larger banks, such as UniCredit and Intesa Sanpaolo. Despite Crédit Agricole’s stake increase, a UniCredit spokesman stated that it “changes nothing” in their plans.
On the day of the announcement, UniCredit shares were down 0.83%, while Crédit Agricole shares rose 0.77%.