France’s Credit Agricole takes 9.2% stake in Italy’s Banco BPM

MILAN (Reuters) -French financial institution Credit score Agricole stated on Thursday it has purchased a 9.2% stake in Italy’s third-largest financial institution, Banco BPM.

Banco BPM has lengthy been trying to find a merger accomplice and held discussions with Credit score Agricole again in 2020 which led nowhere. Italy’s No.2 financial institution UniCredit had additionally readied a takeover bid for Banco BPM however needed to shelve it when Russia invaded Ukraine, sources have instructed Reuters.

Credit score Agricole stated the transaction confirmed its appreciation of Banco BPM’s “strong franchise”, good monetary prospects and “sturdy and performing administration staff.”

The deal “strengthens the strong relationship with Banco BPM,” the French group stated, including it aimed to develop the scope of its strategic partnerships with Banco BPM, presently centred on client finance.

Credit score Agricole stated it had not requested supervisory approval to cross a ten% threshold.

Banco BPM stated in a separate assertion Credit score Agricole’s stake buy had not been beforehand agreed between the 2 banks.

“The standard and significance of the investor, in addition to the appreciation it expressed for our financial institution … signify a transparent acknowledgement of the worth and potential of Banco BPM,” the Italian financial institution stated.

(Reporting by Valentina Za and Andrea Mandala; Enhancing by Sandra Maler and Richard Pullin)