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Natixis to sell business lines to parent bank for $3.1 billion

Staff Writer | September 12, 2018
In order to strengthen its universal banking model, adress new customer usage and better meet clients’ needs across the Banques Populaires and Caisses d’Epargne networks, Groupe BPCE plans to integrate the Consumer financing, Factoring, Leasing, Sureties & guarantees and Securities services businesses within BPCE SA, thereby symplifying its organization.
Acquisition   BPCE SA is contemplating the acquisition of such activities from Natixis
To that end, BPCE SA is contemplating the acquisition of such activities from Natixis, for a total price of €2.7bn.

This operation would lead Natixis to pay a special cash dividend up to €1.5bn, contingent on any significant acquisition project that may arise by the closing of the transaction.

If finalized, the intended transaction will significantly contribute towards Groupe BPCE and Natixis’ ambitions laid out in their respective TEC 2020 and New Dimension strategic plans which targets are reviewed upwards on this occasion (Natixis 2020 RoTE target of 14-15.5% vs. 13-14.5% previously).

If successfully completed, the foreseen transaction will allow Natixis to accelerate the development of its asset-light model.

Natixis would invest up to €2.5bn over its New Dimension strategic plan, primarily in asset management, compared with €1bn initially planned.

Natixis’ independent directors were informed of the projected transaction and appointed Morgan Stanley to provide the fairness opinion on this operation.

Independent directors have assessed the terms and conditions of the proposed transaction over the course of several meetings, with the support of Morgan Stanley, and ruled in favor of the project at today’s Natixis board of directors’ meeting.

BPCE SA supervisory board also approved the transaction project today.

Board members who are also Natixis’ directors did not take part in the vote.