Italy to set conditions on any Banco BPM-Credit Agricole deal

Group 1 - The Italian government will impose conditions on a potential merger between Banco BPM and Credit Agricole Italia, as stated by Economy Minister Giancarlo Giorgetti [1][2] - Banco BPM is actively seeking a merger partner after a failed takeover attempt by UniCredit, with Credit Agricole Italia and state-backed Monte dei Paschi di Siena (MPS) identified as primary options [1][4] - The merger with Credit Agricole Italia is perceived as more feasible due to MPS's involvement in the Mediobanca takeover [2][4] Group 2 - Giorgetti emphasized that he has no political objections to the merger but will enforce existing laws aimed at protecting key assets, known as "golden powers" [2][3] - Banco BPM holds a 9% stake in MPS, while Credit Agricole is the largest investor in Banco BPM, which is Italy's third-largest bank and crucial for financing small businesses [4] - Italy aims to create a third major banking player to compete with Intesa and UniCredit by facilitating a merger between BPM and MPS, a plan that was disrupted by UniCredit's initial takeover attempt [5]