Italian banking landscape redrawn: two years of M&A shake-up
XLF•Credit Agricole proposed merging its Italian division with Banco BPM, offering a 20% valuation premium and a €1 billion extraordinary dividend. The proposal is the latest in a roundup of completed and attempted Italian banking deals since the start of 2025.
1. Latest proposal
Credit Agricole submitted a proposal to Banco BPM’s board on November 9 to combine its Italian division with the bank, creating a group led by Banco BPM CEO Giuseppe Castagna. Credit Agricole would hold about 45% of the combined entity, and said the deal could close in the second half of 2027 if approved by Banco BPM’s board and shareholders.
2. Bids and setbacks
On October 29, Monte dei Paschi di Siena shareholders rejected twin all-share bids totalling about €34 billion for Banco BPM and Banca Generali. Intesa Sanpaolo’s unsolicited €30.6 billion cash-and-share bid for MPS has received European Central Bank approval to proceed, while formal competition approval is still pending. UniCredit has also received ECB approval to take control of Germany’s Commerzbank after pursuing it for more than two years.
3. Other completed deals
The roundup also lists completed transactions including MPS’s €16 billion takeover of Mediobanca, BPER’s €5.4 billion offer for Banca Popolare di Sondrio, and Banco BPM’s €1.8 billion acquisition of Anima Holding. UniCredit dropped its €15 billion offer for Banco BPM in July 2025, while Mediobanca’s €6.3 billion offer for Banca Generali failed to win shareholder approval.
