Key Takeaways
- Credit Agricole (CAGR) has increased its stake in Banco BPM (BAMI), Italy's third-largest bank, to 20.1% through the acquisition of an additional 0.3% via derivatives.
- This move solidifies Credit Agricole's position as the single largest shareholder in Banco BPM, following UniCredit's (UCG) recent decision to drop its takeover bid for the Italian lender.
- The French bank reiterates its intention not to seek control of Banco BPM, committing to keep its stake below the 25% mandatory takeover threshold and not to pursue changes to Banco BPM's board of directors.
- Credit Agricole is currently awaiting European Central Bank (ECB) authorization to formally cross the 20% ownership threshold, which would allow it to convert the derivative contracts into shares.
French banking giant Credit Agricole (CAGR) has further cemented its strategic presence in the Italian banking sector by raising its stake in Banco BPM (BAMI) to 20.1%. A regulatory filing on Monday revealed that Credit Agricole acquired an additional 0.3% of Banco BPM through derivative instruments. This increase reinforces its position as the largest shareholder in Italy's third-biggest bank.
The stake hike comes at a pivotal time, shortly after UniCredit (UCG) abandoned its takeover bid for Banco BPM last month. UniCredit's bid faced government opposition and failed to secure Credit Agricole's agreement to tender its existing stake. Credit Agricole has been a long-standing commercial partner of Banco BPM and first emerged as its single biggest shareholder in early 2022.
Despite the increased ownership, Credit Agricole has reaffirmed its strategic intent, stating it will not seek to acquire control of Banco BPM. The bank intends to maintain its stake below the 25% mandatory takeover threshold, which applies in Banco BPM's case. Furthermore, Credit Agricole has no plans to seek changes to Banco BPM's board of directors.
Credit Agricole is currently awaiting approval from the European Central Bank to officially cross the 20% ownership threshold. Once authorized, the French bank plans to convert the derivative contracts into ordinary shares. Subsequently, it intends to book the Banco BPM stake under an accounting method reserved for significant shareholders, allowing it to more closely benefit from the performance of the Italian bank. Sources familiar with the matter suggest Credit Agricole's long-term plan is to reach just below the 25% threshold.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.