Crédit Agricole Proposes Combining Italian Arm with Banco BPM

01:37 AM EST, 11/09/2026 (MT Newswires) -- French lender Crédit Agricole (ACA.PA) proposed a merger between its Italian arm, Crédit Agricole Italia, and Banco BPM (BAMI.MI), aiming to create Italy's third-largest banking group, according to a Monday release. Crédit Agricole would increase its stake in the potential combined entity to 45% from its current 29.6% stake in Banco BPM. However, the new entity would be built around Banco BPM and would remain listed in Milan, with Banco BPM's current CEO becoming CEO of the new entity. The transaction is expected to provide a 20% premium to Banco BPM shareholders under the proposed exchange ratio, plus an extraordinary dividend of 1 billion euros. It would also boost Banco BPM's 2027 EPS by an estimated 24%, according to the release. The annual synergies are estimated to be 800 million euros. Crédit Agricole has submitted the proposal to Banco BPM's board. The proposed deal remains subject to approval by Banco BPM's shareholders and regulatory clearances.