France’s Crédit Agricole always had the power to play spoiler in UniCredit’s bid to buy its domestic Italian rival, Banco BPM.
Friday, it flexed.
Crédit Agricole used derivatives to increase its stake in Banco BPM to 15.1% — from its previous 9.9% holding — and notified Italian authorities of the move, it said Friday.
The bank assured it “does not intend” to make its own takeover bid for BPM, but it added that it will seek European Central Bank approval to buy beyond a 10% threshold (up to 19.99%) in BPM.
“This transaction is consistent with Crédit Agricole’s strategy as a long-term investor and partner,” the French bank said in its release.
Observers may note the “derivatives contract” move is precisely the same strategy UniCredit employed to bump up its stake in Germany’s Commerzbank in September, sparking fear of a hostile takeover attempt and ardent pushback from the German government.
Reception in Italy to Crédit Agricole’s buy-up has been tame, in contrast: The bank had the Italian government’s informal backing before boosting its stake, Reuters reported.
Crédit Agricole’s move “changes nothing,” UniCredit said Saturday in a LinkedIn post seen by the Financial Times.
“We were always prepared to negotiate with CA, as this would have been necessary whatever the scale of their shareholding,” UniCredit said.
Crédit Agricole has had a presence in Italy since 1972, and partners with Banco BPM on consumer credit and insurance.
The French bank became BPM’s largest investor in 2022 — perhaps ironically, shortly after UniCredit’s last takeover bid for BPM fell through.
UniCredit CEO Andrea Orcel and Crédit Agricole chief Philippe Brassac are working to schedule a meeting in the next few weeks, according to Bloomberg. Discussions will almost surely focus on partnerships – particularly, protecting Crédit Agricole’s ability to continue distributing its products in Italy.
But another concern is a partnership Crédit Agricole has with UniCredit itself. UniCredit sold its fund management business to Amundi, Crédit Agricole’s asset-management arm. But the two banks signed a 10-year partnership. Orcel has said he wants to reduce the share of Amundi funds that UniCredit sells, and the partnership ends in 2027.
Further, UniCredit bid to buy BPM while BPM had launched a plan to buy an Italian fund manager, Anima. If both deals are approved, UniCredit, in theory, would have no need to partner with Amundi.
Banco BPM rejected UniCredit’s initial €10.1 billion bid, arguing the premium was too low.
Orcel told UniCredit investors last week he has until March to evaluate whether to offer a higher price point for BPM, according to Reuters. The CEO last month said there would be time to speak with all BPM shareholders to get to a "proposition that everyone is comfortable with.”
A UniCredit spokesperson on Friday, meanwhile, said, “BPM shareholders should not welcome” Crédit Agricole’s increased stake, according to Reuters.
The Italian government, though, may see UniCredit as more of a spoiler than its French neighbor. The government sold BPM a 5% stake in Banca Monte dei Paschi di Siena, in the hope that BPM, the nation’s third-largest bank, could pose greater competition for Intesa Sanpaolo and UniCredit.
