PARIS / MILAN — Crédit Agricole SA said on Monday, November 9, it has proposed to Banco BPM SpA that the two engage in discussions on merging Banco BPM with Crédit Agricole Italia, in a deal that would create Italy's third-largest banking group. The combined entity would be built around Banco BPM and would remain listed in Milan, the French bank said in its press release, issued from Montrouge.

Source: Crédit Agricole press release, Nov 9 2026

Reuters reported the proposal deepens the French lender's role in a consolidation wave reshaping the Italian financial sector, and that Crédit Agricole briefed the Italian government before the announcement, according to sources cited by the news agency. The proposal has been submitted to the board of Banco BPM for evaluation; Banco BPM's chief executive, Giuseppe Castagna, would lead the merged group. It is a proposal, not an agreed deal — Banco BPM has not yet responded publicly in the reports checked.

Source: Reuters, Nov 9 2026

The terms: 20% premium, €1 billion dividend, €800 million a year in synergies

For Banco BPM's shareholders, the proposal provides an exchange ratio reflecting a 20% premium — measured against the 2027 estimated price-to-earnings multiple used to value the businesses Crédit Agricole would contribute — in addition to an extraordinary dividend of €1 billion (yaani about €100 crore, roughly $1.1 billion) to BPM's current shareholders. Expected synergies are estimated at €800 million per year before tax, and the bank estimates the transaction would lift Banco BPM's earnings per share in 2027 by about 24%. Through its contributions, Crédit Agricole would rise from its current 29.6% stake in Banco BPM to approximately 45% of the combined entity.

Source: Dow Jones Newswires via Morningstar, Nov 9 2026

Markets liked it: Banco BPM jumps 10%

European shares rose on Monday, led by banks. The pan-European STOXX 600 rose 0.5% to 651.38 points by 0926 GMT and the Euro STOXX banking index gained 1.6%, Reuters reported. Banco BPM jumped 10% after the merger proposal, while UniCredit gained 5.2% after posting a 24% annual rise in third-quarter earnings, much larger than forecast, and raising its full-year profit goal. Offering some relief to the wider market, Brent crude fell about 2% after US President Donald Trump downplayed the likelihood of new strikes on Iran as long as talks progress.

Source: Reuters, European shares, Nov 9 2026

What the combined bank would look like

Crédit Agricole called the proposal a natural extension of the two groups' long-term partnership, built on "a long-term industrial and entrepreneurial vision" to create "a new national champion." The combined group would be a fully integrated Italian financial services group spanning banking, insurance — including Crédit Agricole's Italian life and non-life businesses — asset management and specialised finance. Its board would keep a majority of independent members, and Banco BPM's current chief executive would be confirmed as CEO. Crédit Agricole Italia alone has 12,400 employees, about 1,000 branches and 2.9 million customers, and the wider group says it has granted €68 billion of loans to customers in Italy over ten years.

What happens next

Banco BPM's board will evaluate the proposal, and the specific legal structure will be defined between the parties. If it advances, the transaction goes to Banco BPM's extraordinary general meeting — where the whitewash exemption requires that shareholders other than Crédit Agricole and any holder above 10% do not vote it down — and then to the European Central Bank and Italy's golden-power process. Crédit Agricole says the proposed transaction could be completed in the second half of 2027.