The Italian government is considering setting conditions on a potential merger between Banco BPM and the Italian unit of France’s Credit Agricole, according to Economy Minister Giancarlo Giorgetti. Banco BPM is reportedly seeking a merger partner following a thwarted takeover attempt by UniCredit. CEO Giuseppe Castagna has identified Credit Agricole Italia and state-backed Monte dei Paschi di Siena (MPS) as the leading candidates for a merger.
Giorgetti addressed concerns about a potential BPM deal with the French lender, stating that he would invoke legislation designed to protect key national assets—referred to as ‘golden powers’—should such a merger proceed. ‘I have no political objections, I have a law that I must enforce as I have done in the recent past. As I have enforced it for others I will enforce it for them, there is a law and it applies to everyone,’ Giorgetti stated. Castagna recently travelled to Rome to discuss potential merger options for the Milan-based bank with key government officials.
Banco BPM is a prominent Italian banking group offering a range of financial services to individuals, businesses, and institutions. Credit Agricole is a French international bank. Banco BPM currently holds a 9% stake in MPS, while Credit Agricole is the largest investor in BPM. The potential deal is significant given that Italy has been aiming to establish a third major banking player to compete with Intesa and UniCredit.
Italy and France face considerable refinancing requirements. Prime Minister Meloni has expressed her desire to see Italian savings invested within the country. UniCredit’s earlier attempt to acquire BPM in November had initially disrupted the planned merger between BPM and MPS, before that planned deal fell through.
