Banco BPM’s shares surged on Monday after Crédit Agricole announced it would increase its stake in the Italian bank. The shares rose over 2% in early trading, marking the highest increase since January 2016.
Crédit Agricole revealed on Friday that it had started procedures to raise its stake in Banco BPM. The French bank plans to boost its ownership from 9.9% to 15.1%, subject to approval from Italian regulators.
The French lender clarified that it does not intend to launch a tender offer for Banco BPM shares. This means it will not pressure shareholders to sell their stock. The decision suggests that Crédit Agricole is not planning a large-scale takeover in the immediate future. The bank stated that this move aligns with its strategy as a long-term investor and partner of Banco BPM.
UniCredit’s Bid Faces More Obstacles
The news of Crédit Agricole’s move came after UniCredit launched an unsolicited €10.1 billion bid for Banco BPM last month. Banco BPM rejected UniCredit’s offer, arguing that it undervalued the company. The smaller Italian bank also raised concerns about potential job cuts, reduced competition in Italy’s banking sector, and UniCredit’s expansion in Germany.
UniCredit has been increasing its stake in Commerzbank, a move that has faced strong opposition from Berlin. Banco BPM fears that a UniCredit takeover could expose its stakeholders to risks linked to the German bank’s expansion.
The Italian government has signaled it might block a UniCredit takeover of Banco BPM if it is not in Italy’s national interest. However, sources say the Meloni government has informally approved Crédit Agricole’s plan to increase its stake in Banco BPM.
Banco BPM’s Own Expansion Plans
Banco BPM has also been active in pursuing growth. In November, it launched a bid to acquire asset manager Anima Holding. This move would help Banco BPM diversify its revenue streams as interest rates decline.
Rumors suggest that Banco BPM might merge with Monte dei Paschi di Siena (MPS) after buying a 5% stake in the bank. A potential merger could create a stronger competitor to larger Italian lenders like UniCredit and Intesa Sanpaolo.
A spokesperson for UniCredit stated that the Crédit Agricole announcement would not affect their plans. As of midday CET, UniCredit shares were down 0.83%, while Crédit Agricole shares had risen by 0.77%.