Italy’s Watchdog OKs Credit Agricole’s Bid For Creval

Italy has given a green light to the takeover bid Credit Agricole Italia plans to launch for small lender Credito Valtellinese (Creval), two government sources told Reuters on Monday, February 15.

The offer by the Italian division of France’s Credit Agricole needed approval by the Rome government, which reserves the right to block unwanted bids in strategic industries such as banking, telecoms, and health.

The so-called “golden powers” allow Rome to ward off or set strict prescriptions on takeovers in key industries from non-European Union and – under a temporary framework in place until June 30 – also EU groups.

The Treasury last week sent to the cabinet office of former Prime Minister Giuseppe Conte a recommendation saying such special powers should not be exercised in Creval’s case.

But the outgoing government decided on Friday to leave the task in the hands of former European Central Bank President Mario Draghi, who was sworn in as prime minister on February 13.

The new cabinet met immediately after taking office and agreed to comply with the Treasury’s request, the two sources said.

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