Crédit Agricole’s decision to increase its stake in Banco BPM may hinder UniCredit’s acquisition plans.
Banco BPM’s shares surged over 2% on Monday after Crédit Agricole revealed it had raised its stake in the bank. This marked the highest rise in Banco BPM shares since January 2016.
Crédit Agricole announced on Friday that it had started proceedings to boost its stake in Banco BPM from 9.9% to 15.1%. The increase is subject to approval from Italian regulators.
The French bank clarified that it does not intend to make a tender offer for Banco BPM shares. This indicates that a large-scale takeover is not immediately on the table. Despite this, Crédit Agricole remains the largest investor in Banco BPM.
Crédit Agricole described the move as part of its strategy as a long-term investor and partner. It emphasized strengthening industrial partnerships in consumer finance and non-life insurance, as well as recognizing Banco BPM’s solid business prospects.
UniCredit Faces Opposition Over Bid for Banco BPM
Crédit Agricole’s announcement follows UniCredit’s unsolicited €10.1bn bid for Banco BPM last month. Banco BPM rejected the offer, claiming it undervalued the company.
Banco BPM raised concerns over potential job losses, reduced competition in the Italian banking sector, and UniCredit’s expansion in Germany. UniCredit has been increasing its stake in Commerzbank, which has faced strong resistance in Berlin.
Banco BPM expressed concerns that a UniCredit takeover would expose its stakeholders to risks linked to UniCredit’s German expansion.
The Italian government may block UniCredit’s bid if it deems the takeover not to be in Italy’s national interest. However, the government has informally approved Crédit Agricole’s plan to increase its stake in Banco BPM.
In addition to the Crédit Agricole development, Banco BPM launched its own acquisition bid for asset manager Anima Holding in November. This would help the bank diversify its revenue streams as interest rates fall.
Rumors also suggest a potential merger with Monte dei Paschi di Siena (MPS), as Banco BPM recently acquired a 5% stake in MPS.
Despite Crédit Agricole’s increased stake, UniCredit’s spokesman dismissed the news, stating it “changes nothing” for their bid.
As of midday CET, UniCredit shares were down 0.83%, while Crédit Agricole shares rose 0.77%.
