MILAN (Reuters). -French Bank Credit Agricole (OTC) announced Thursday that it had bought a 9.2% share in Italy’s third largest bank Banco BPM.

Banco BPM is long in search of a partner for mergers. Credit Agricole held talks with Banco BPM back in 2020, but these discussions did not lead anywhere. According to sources, Reuters has learned that UniCredit in Italy was considering a takeover bid for Banco BPM. However, it was forced to halt the talks when Russia invaded Ukraine.

Credit Agricole stated that the transaction demonstrated its appreciation for Banco BPM’s solid franchise, good financial prospects, and strong and efficient management team.

This deal strengthens Banco BPM’s solid relationship, said the French group. It also stated that the French company aimed to broaden its strategic partnership with Banco BPM. The current focus of Banco BPM is consumer finance.

Credit Agricole claimed it hadn’t requested supervision approval for the 10% threshold.

Banco BPM stated in separate statements that Credit Agricole had not previously been agreed to purchase a stake.

According to the Italian bank, “The importance and quality of the investor as well as its appreciation for our bank… reflect a clear recognition of the value of Banco BPM.”