Crédit Agricole has proposed discussions with Banco BPM over a merger between Banco BPM and Crédit Agricole Italia.
The proposed combined bank would remain listed in Milan, with the French lender adding that Banco BPM will be “at the heart” of the new entity.
Crédit Agricole submitted what it described as a “friendly” proposal to Banco BPM’s board of directors.
The proposal follows the existing long-term partnership between the two groups.
The merger would create Italy’s third-largest banking group, according to Crédit Agricole.
The combined business would have 6.5 million customers and more than 2,300 branches.
The group would combine Banco BPM and Crédit Agricole’s Italian operations.
Its activities would cover banking, insurance, asset management, and specialised financial businesses.
Crédit Agricole’s Italian insurance activities would form part of the combined business, including life insurance and property and casualty.
The proposal sets out that the combined group would retain its own identity and operational autonomy. Its Board of Directors would have a majority of independent members.
Banco BPM’s current CEO would lead the new entity.
For Banco BPM shareholders, Crédit Agr...