PARIS: Credit Agricole SA raised its stake in Banco BPM SpA to 29.3%, reinforcing its position in the Italian financial sector which is currently in focus due to a flurry of deal proposals.
The French bank, which held at 22.9% interest in Banco BPM at the end of the first quarter, disclosed the new stake in a statement last Friday.
It said it reached the higher level through market purchases and a derivative instrument, and had notified the Italian authorities and Banco BPM that it had crossed the 25% threshold.
“The additional stake will impact Credit Agricole’s CET 1 ratio by around negative 35 basis points,” the French bank’s statement said. “The increase in ownership is consistent with Credit Agricole’s strategy as a long-term investor and partner of Banco BPM in its development.”
Banco BPM in June pitched the idea of a merger of equals with Banca Monte dei Paschi di Siena SpA, a day before Italy’s largest bank Intesa Sanpaolo SpA offered to buy Monte Paschi in a deal worth more than 30bil.
The competing approaches for the world’s oldest bank have added fresh momentum to a series of acquisitions that have been reshaping Italy’s financial sector over the past two years.
The French lender has been raising its stake over the past few years as it seeks to defend its interests in Italy, while saying that it didn’t plan a takeover.
Italy is Credit Agricole’s biggest foreign market, and chief executive officer Olivier Gavalda has made growth in the country a top priority since he took over a little more than a year ago.
The French bank previously won approval from the European Central Bank to raise its stake in Banco BPM above 20% to just below 30%, as the Italian partner itself became the target of an ultimately unsuccessful takeover attempt by UniCredit SpA. — Bloomberg
