PARIS (dpa-AFX) - Crédit Agricole S.A. (ACA.PA), a France-based banking group, said Monday that it has proposed discussions with Banco BPM S.p.A. on a potential merger with its Italian subsidiary, Crédit Agricole Italia, in a deal that would create Italy's third-largest banking group.
The combined entity would be built around Banco BPM and remain listed in Milan, with Banco BPM's current CEO continuing to lead the merged group. The proposal aims to preserve the identity and operational autonomy of the combined entity, with a balanced governance structure.
The proposed group would serve 6.5 million customers through more than 2,300 branches across Italy.
For Banco BPM shareholders, the deal will include an exchange ratio representing a 20% premium, along with an extraordinary dividend of EUR 1 billion. The transaction is expected to generate annual synergies of EUR 800 million and increase Banco BPM's earnings per share by approximately 24% in 2027.
Following the transaction, Crédit Agricole's stake in the combined entity would increase from its current 29.6% holding in Banco BPM to approximately 45%.
The proposed transaction is subject to approval by Banco BPM shareholders and customary regulatory clearances, including authorization from the European Central Bank. Completion is expected in the second half of 2027.
In Paris, Crédit Agricole shares were down more than 1% at EUR 15.61 on Monday.
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