UniCredit announced it will launch its buyout offer for Banco BPM on April 28, coinciding with Credit Agricole's announcement that it had received supervisory approval to hold up to 19.9% of BPM's capital.
Credit Agricole recently acquired a 9.2% stake in Banco BPM shortly after UniCredit's previous attempt to take over the smaller bank was unsuccessful. With authorization from the European Central Bank, Credit Agricole will increase its stake to 19.8%.
Although Credit Agricole has ruled out a counterbid, it remains a significant challenge for UniCredit CEO Andrea Orcel. Orcel's interest in BPM disrupted the Italian Treasury's plans for a potential merger between Banco BPM and state-backed Monte dei Paschi di Siena.
To strengthen BPM's defenses against UniCredit, Credit Agricole began acquiring more shares through derivative contracts following its initial stake increase. This included further acquisitions in the first quarter.
Credit Agricole has vested interests in its largest market outside France, partnering with Banco BPM in consumer credit and insurance. Moreover, its asset manager, Amundi, has a distribution agreement with UniCredit that is set to expire in 2027.
After receiving approval for its €14 billion ($15.11 billion) all-share bid for BPM, UniCredit confirmed that the Italian market watchdog Consob had approved the share offer document. The offer will be open from April 28 to June 23.
UniCredit's bid for BPM is part of a series of hostile takeovers shaking up Italy's banking sector, which, after enduring a challenging clean-up post-2008 crisis, is currently experiencing record profits due to rising interest rates.