Strengthening Ties with Banco BPM

Credit Agricole S.A. has announced its intention to seek approval from the European Central Bank (ECB) to increase its stake in Banco BPM S.p.A. above the current 20% threshold. This move aims to deepen its relationship with the Italian lender, following the ECB's earlier authorization in April for a stake of up to 19.9%.

Strategic Financial Moves

Currently holding 19.8% of Banco BPM, the French banking giant is looking to cross a significant threshold that would allow it to apply the equity method of accounting, signifying "significant influence." However, Credit Agricole has clarified that it does not plan to take control of Banco BPM, ensuring its stake remains below the mandatory tender offer threshold.

Regulatory Context

This development comes in the wake of the European Commission's conditional approval last month for the merger between UniCredit S.p.A. and Banco BPM, marking a pivotal moment in the Italian banking sector.