(AFP/ISSOUF SANOGO)
The board of directors of Orange Bank rejected the takeover offer from the Ripplewood investment fund on Friday, announced a spokesperson for the bank subsidiary, which will close, of the French operator, confirming information from La Letter.
“After carefully analyzing Ripplewood/IrisFinancial’s offer, particularly through its ability to guarantee the sustainability of activity and employment, the board of directors of Orange Bank unanimously decided not to not follow up on the takeover offer and confirmed that it favors the plan to close the bank”, indicates Orange Bank in a statement to AFP.
In addition to a recapitalization of the bank before the sale, Ripplewood’s offer provided for continued employment for two years, enabling it to fit within the framework of the Florange law, which aims to avoid or limit the effects on the use of a site closure project.
But its recovery plan, focused on rapid growth in the number of customers and ambitious deposit collection, was considered unrealistic, giving little guarantee of employment beyond two years.
“We are convinced that this decision is in the interest of employees and customers,” emphasizes Orange Bank.
The online banking market is very competitive in France, with few elected officials managing to be profitable. The latest victim, the Postal Bank, announced on December 21 that it was considering the closure of its subsidiary Ma French Bank.
Orange announced in June 2023 the upcoming closure of its online bank, launched with great fanfare by former CEO Stéphane Richard in 2017 on the basis of banking activities purchased from the insurer Groupama. Orange Bank has since accumulated losses.
The group has also entered into negotiations with BNP Paribas, which should be able to take over part of Orange Bank’s 800,000 customers in France, but neither its activities nor its employees.
A strike was organized at the end of November to demand better reclassification of employees, followed by 60% of the group’s workforce of around 650 employees, according to a union representative.