Published by Global Banking & Finance Review®
Posted on September 19, 2025
2 min readLast updated: January 21, 2026
Credit Agricole, with Deutsche Bank and Rothschild, is considering merging with Banco BPM, reshaping Italy's banking sector.
MILAN (Reuters) - Credit Agricole has been working with Deutsche Bank and Rothschild on a potential merger deal of its Italian arm with Banco BPM, three sources said.
Banco BPM is weighing tie-up options after escaping a takeover attempt by bigger rival UniCredit, amid a wave of consolidation reshaping Italy's banking sector.
Banco BPM Chief Executive Giuseppe Castagna said on Thursday that a deal with Credit Agricole Italia was the "clearest option" for his group and would be beneficial for the country's economy.
Credit Agricole is a long-standing BPM commercial partner and the single largest shareholder in the Italian lender, with a stake of just above 20%.
That stake could rise to 35% following a combination of Credit Agricole's Italian operations and Banco BPM, a fourth person briefed on the discussions said.
Any deal needs political blessing because Italy has powers it can use to shield strategic corporate assets. Rome has opposed UniCredit's bid for BPM on national security grounds, but Credit Agricole has traditionally had a good relationship with the Italian government.
Credit Agricole, Deutsche Bank and Rothschild all declined to comment. News of the advisers was first reported by Italian daily Il Messaggero on Friday.
State-backed Monte dei Paschi di Siena remains the alternative M&A option for Banco BPM, Castagna said on Thursday.
Banco BPM owns 9% of Monte dei Paschi and the government has long sought to promote a combination of the two mid-sized banks.
The now collapsed UniCredit bid, however, derailed that plan and Monte dei Paschi has now secured control of Mediobanca, under a bid that concludes on Monday, making a three-way deal hard to pursue in the near term.
(Reporting by Valentina Za and Mathieu Rosemain; Editing by Alvise Armellini)
Credit Agricole is exploring a merger deal with Banco BPM, which is its Italian arm, in collaboration with Deutsche Bank and Rothschild.
Banco BPM Chief Executive Giuseppe Castagna stated that a deal with Credit Agricole Italia is the 'clearest option' and would benefit the country's economy.
Credit Agricole is the single largest shareholder in Banco BPM, holding just above 20% of the shares, which could increase to 35% if the merger occurs.
Any merger deal requires political approval, as Italy has mechanisms to protect strategic corporate assets, which previously affected UniCredit's bid for Banco BPM.
Banco BPM is also considering a merger with state-backed Monte dei Paschi di Siena, which it owns 9% of, although previous plans were disrupted by the failed UniCredit bid.
Explore more articles in the Finance category
