Credit Agricole has been working with Deutsche Bank and Rothschild to explore options on Banco BPM, according to people familiar with the matter.
The French bank has tapped advisers to review options including a potential merger between Banco BPM and Credit Agricole’s Italian operations, which would end up with Credit Agricole taking a 30% to 40% stake in the combined entity, some of the people said, asking to not be named as the process is private.
Considerations are at preliminary stages and no decision has yet been made, the people said. A spokesperson for Credit Agricole declined to comment.
Italian newspaper Il Messaggero was first to report the news.
Credit Agricole is a long-standing commercial partner of BPM and the single largest shareholder in the Italian lender, with a stake of just above 20%.
The future of Credit Agricole in Italy – its biggest market after France – has been a top priority for Chief Executive Officer Olivier Gavalda since he took the helm of the lender in May. The bank will unveil its new strategic plan in November.
Banco BPM CEO Giuseppe Castagna reiterated Thursday in an interview on CNBC that Credit Agricole’s Italian unit is “a clear opportunity” for a potential combination. The bank is weighing its options after escaping a takeover attempt by rival UniCredit, amid a wave of consolidation reshaping Italy’s banking sector.
Credit Agricole deputy general manager Clotilde L’Angevin said on Bloomberg Television in July that the bank would work to support Banco BPM as an independent entity.