Credit Agricole to buy 600 branches in Intesa-Sanpaolo merger

Credit Agricole, France's largest banking group, is to buy around 600 branches from Italy's Banca Intesa for almost E6 billion, according to reports.

Reports suggest that the deal has been struck in order to allow Intesa to complete its proposed merger with fellow Italian financial services outfit Sanpaolo IMI.

Credit Agricole is currently the largest shareholder in Intesa and, as such, has the power to block the merger if it wishes. The deal to allow Agricole to acquire the branches is designed to compensate the French bank, which is likely to see its 18% stake in Intesa reduced to around a quarter of that in the newly merged entity.

According to Reuters, Intesa is ready to sell its Cariparma and FriulAdria units, which comprise around 450 branches, while Agricole will also have the opportunity to acquire around 150 Intesa and Sanpaolo combined branches.