LBP-BPCE to strengthen shareholding and industrial partnerships

LBP-BPCE to strengthen shareholding and industrial partnerships

La Banque Postale, a French banking group, and Groupe BPCE, a financial services company, are reportedly planning to streamline and strengthen their shareholding and industrial partnerships.

As initiated by La Banque Postale, both the companies have inked a memorandum of understanding. This MoU is subject to necessary approvals from the regulatory authorities for insurance or asset management activities, as well as for merger control. It is also subject to the consultation process of the works councils. In this context, they would enter an agreement, notably including the disposal of BPCE’s 16.1% stake in CNP Assurances to LBP at €21.90 per share.

In addition, the exclusive negotiations of La Banque and BPCE to simplify the shareholding relationship could result in BPCE acquiring LBP’s minority stakes in AEW Europe (40%) and Ostrum (45%). On commercial and industrial sides, for the asset management and insurance activities, these groups are planning to continue their contractual relationships to benefit their clients. Such reinforcement of industrial partnerships would favorably result in the extension of all management and distribution agreements until 2030.

As a part of these transactions, the two groups are intending to initiate talks with CNP Assurances to extend their industrial partnership in protection insurance and savings, which is apparently in force until 2030 and is likely to be extended until 2035.

Furthermore, La Banque Postale announced plans to take over 21.1% of the capital of CNP Assurances that it would not hold after BPCE’s acquisition of its current stake in the insurance company, by filing a simplified public tender offer for its remaining minority shareholders with the French AMF (Autorité des marchés financiers). This proposed transaction is geared towards promoting the insurance corporation’s development across the domestic as well as international markets.

The tender offer, which is subject to necessary regulatory approvals and the AMF’s clearance decision, is expected to be opened by the first quarter of 2022.

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