by Jérémie Boudinet, Credit Fund Manager, La Française AM.
First and foremost, I consider the move by Crédit Agricole SA as defensive; a tactic to protect its existing business partnerships with Banco BPM. Even though the French bank made the same move previously with Credito Valtellinese, before ultimately absorbing it, merging with Banco BPM would be much more financially significant. Furthermore, a merger would likely require the approval of the group’s French regional banks (Caisses Régionales de Crédit Agricole, which hold more than 50% of Crédit Agricole SA, aka CASA), which could be reluctant to ratify the decision. Crédit Agricole Group was quite traumatized by the disaster left after its former foreign adventures (i.e., Emporiki and Bankinter stakes sold with significant losses in 2012) and may therefore discourage Crédit Agricole SA from embarking again on this path.
Disclaimer
This commentary is intended for non-professional investors within the meaning of MiFID II. It is provided for informational and educational purposes only. The opinions expressed by La Française Group are based on current market conditions and are subject to change without notice. These opinions may differ from those of other investment professionals. Published by La Française AM Finance Services, head office located at 128 boulevard Raspail, 75006 Paris, France, a company regulated by the Autorité de Contrôle Prudentiel as an investment services provider, no. 18673 X, a subsidiary of La Française. La Française Asset Management was approved by the AMF under no. GP97076 on 1 July 1997.