Explainer
Can Crédit Agricole grow its Banco BPM stake without a full takeover bid?
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Crédit Agricole proposes merging its Italian unit, Crédit Agricole Italia, into Banco BPM, which would form the group's core. The merged group would stay listed in Milan.
Milan
Crédit Agricole already holds 29.6% and would rise to about 45%. The deal is designed to avoid a bid: the two-thirds shareholder vote would qualify as a whitewash, which would exempt Crédit Agricole from launching a public tender offer.
- Current stake29.6%
- Post-merger stake (approx.)45%
Banco BPM shareholders would get a 20% premium through the exchange ratio, plus an extraordinary one billion euros for current Banco BPM shareholders. That is the incentive to back the two-thirds vote.
20%
The French group estimates 800 million euros a year in pre-tax synergies. Talks still need the Banco BPM board's go-ahead first.
€800m
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The story
Crédit Agricole proposes merger talks with Banco BPM, lifting its stake to about 45%Read the article
Based on reports by
- Il Sole 24 OREBanco Bpm: Agricole proposes “friendly” merger with CA Italia without tender offer
- AdnkronosCredit Agricole proposes to Banco Bpm the start of merger negotiations
- AdnkronosBanco Bpm, from Agricole the proposal for a friendly merger with C.Agricole Italia: here are the details
- Bloomberg BusinessCredit Agricole Proposes Merging Local Unit With Banco BPM
- La Repubblica.itCredit Agricole proposes to Banco Bpm the start of merger negotiations
- Il Sole 24 ORECrédit Agricole breaks the ice on BancoBpm: a merger in Italy on the table, one billion extraordinary dividend for shareholders