Crédit Agricole and UniCredit recently discussed the possibility of making a joint move involving Banco BPM under a potential plan that could include breaking up the target bank, according to people familiar with the matter who requested anonymity because of the confidential nature of the discussions.
The sources said the idea was raised during discussions with Italian authorities, while the two banks assess potential scenarios as part of the consolidation of Italy’s banking sector. The three banks declined to comment.
Scenario to break up Banco BPM
One of the ideas raised with Italian authorities involves breaking up Banco BPM, with UniCredit giving Crédit Agricole about one-third of the company, according to one of the sources.
Crédit Agricole owns a 29.3% stake in Banco BPM, making it the bank’s largest investor, and has declared its opposition to a merger between Banco BPM and Monte dei Paschi di Siena. The French bank, by contrast, says it would support combining Banco BPM with its Italian unit.
Banco BPM has become the target of a takeover bid by Monte dei Paschi di Siena, which is itself seeking to fend off a takeover attempt by Intesa Sanpaolo, Italy’s largest bank. A foreign takeover of Italy’s fourth-largest bank could face political sensitivity ahead of national elections scheduled for next year.
UniCredit’s moves in Italy and abroad
UniCredit failed to acquire Banco BPM in 2025, partly because of opposition from Crédit Agricole. Since then, UniCredit Chief Executive Andrea Orcel has said Italy’s second-largest bank is “watching” the country’s merger and acquisition activity, while a person familiar with the matter said that position has not changed.
UniCredit secured nearly half of the capital carrying voting rights in Germany’s Commerzbank after a two-year effort. Orcel has not ruled out bypassing the domestic banking consolidation process altogether, but the bank could be interested in acquiring branches that rival banks put up for sale when they merge, according to the source.
As it sought to maintain its domestic presence during its lengthy effort to acquire Commerzbank, UniCredit built a 9% stake in insurer Generali. Intesa Sanpaolo could replace Monte dei Paschi di Siena as Generali’s leading investor if Intesa succeeds in completing the takeover.
Crédit Agricole Holds Firm in Italy
A Commerzbank deal would make Germany UniCredit’s main market, while Italy has become Crédit Agricole’s main foreign market after two decades of slow and steady expansion.
“We are cautious, we are patient, and we are here to stay in Italy, so we are calmly looking at all the different scenarios.”
Crédit Agricole Chief Financial Officer Clotilde L’Angevin said in an interview on Wednesday: “We are in a position to defend our interests; nothing can be done without us, and nothing can be done against us.”
