Crédit Agricole Secures ECB Approval to Raise Banco BPM Stake to 19.9%

Crédit Agricole has received approval from the European Central Bank (ECB) to increase its stake in Italy's Banco BPM to 19.9%, up from its current 9.9%. This strategic move aligns with Crédit Agricole's long-term investment goals, although the bank has clarified it is not pursuing full ownership of Banco BPM. The French lender plans to convert its financial instruments into actual shares, resulting in a 19.8% stake. Meanwhile, UniCredit is set to launch a takeover bid for Banco BPM, which could complicate the situation for Crédit Agricole as it will increase its voting power. Banco BPM previously rejected an unsolicited €10 billion bid from UniCredit, claiming it undervalued the bank. Crédit Agricole's asset manager, Amundi, has a significant partnership with UniCredit, adding further complexity to the competitive landscape.