The European Central Bank (ECB) has granted Crédit Agricole approval to increase its stake in Italy’s Banco BPM to 19.9 per cent, posing a challenge to UniCredit.

The move complicates UniCredit’s plans, as the Italian bank announced on Wednesday that it would launch a €14 billion ($15 billion) tender offer for Banco BPM on April 28.

Crédit Agricole became Banco BPM’s largest investor in 2022 and currently holds a 9.9 per cent stake. The French bank plans to use derivative instruments to raise its shareholding to 19.9 per cent. However, Crédit Agricole clarified in a statement that it does not intend to remain a long-term shareholder and is not seeking to launch a full takeover bid for Banco BPM.

Italy is a key market for Crédit Agricole, representing its largest foreign operation. The bank has a broad presence in the country, spanning consumer loans, corporate investment banking, asset management, insurance, and private banking. With over 900 branches and millions of customers, Crédit Agricole is keen to safeguard its commercial interests in Italy.

Banco BPM, Italy’s second-largest bank, confirmed that its tender offer—approved by market regulator Consob—will remain open until June 23. Following the announcement, UniCredit CEO Andrea Orcel invited Banco BPM’s investors to discussions, expressing his willingness to explore mutually beneficial solutions. However, buyout regulations require equal treatment for all shareholders, meaning any offer must be fair and equitable, with no preferential terms for specific investors.

Crédit Agricole is also UniCredit’s partner in asset management through its subsidiary Amundi, whose products are distributed under a deal set to expire in 2027. The agreement ensures that Amundi’s products account for roughly 75 per cent of the assets UniCredit manages for its Italian clients. Although the contract runs until 2027, UniCredit has the option to exit as early as this year, with Orcel setting a May deadline for Crédit Agricole to decide on an extension.

In 2017, Amundi acquired UniCredit’s fund management business, Pioneer Investments, for €3.6 billion, significantly expanding its European footprint and cementing its position as a leading global asset manager. Amundi’s shares fell 6.9 per cent on Wednesday, marking their steepest daily decline since 2020, reflecting investor concerns over strained negotiations between UniCredit and Crédit Agricole.

Meanwhile, Agos—the consumer credit joint venture between Crédit Agricole (61 per cent) and Banco BPM (39 per cent)—reported a net profit of €190 million and revenues of €840 million for 2024.

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