Banco BPM: Agricole proposes a ‘friendly’ merger with CA Italia without a takeover bid
Castagna as CEO and listing on the Milan Stock Exchange; Banque Verte holds a 45 per cent stake
(Il Sole 24 Ore Radiocor) - Credit Agricole has finally taken the plunge and opened the long-awaited new chapter in the Italian banking game of Risk. The ‘Banque Verte’ has in fact proposed to Banco Bpm ‘to enter into negotiations regarding a merger between Banco Bpm and Credit Agricole Italia’ in order to ‘jointly create a new leading Italian bank’. The deal, described as amicable, “has been submitted to the Banco Bpm board of directors for consideration”, which confirms that it has received the proposal. Agricole is proposing “an exchange ratio reflecting a 20 per cent premium” compared with “the price-to-earnings multiple expected for 2027 used to value Credit Agricole’s contributions”, in addition to the payment of “a one-billion extraordinary dividend to Banco Bpm’s current shareholders”. The expected synergies are estimated at 800 million per year. Agricole notes that “Banco Bpm would form the core of the merged entity, which would remain listed in Milan”. The French bank’s stake would rise from the current 29.6 per cent to 45 per cent of the post-merger company’s share capital, which is expected to be approved by Banco BPM’s general meeting with the necessary majorities (two-thirds of the share capital present) in order to ‘benefit from the so-called whitewash, thereby exempting Crédit Agricole from the obligation to launch a takeover bid’. The deal could be finalised in the second half of 2027. Giuseppe Castagna ‘would be confirmed as chief executive of the new entity’.
Com-Ppa-
