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 having carefully analyzed the offer from Ripplewood/IrisFinancial, particularly through its ability to guarantee the sustainability of the activity and employment, the board of directors of Orange Bank unanimously decided not to pursue the takeover offer and confirmed favor the plan to close the bankindicates Orange Bank in a statement to AFP.
A recovery plan considered unrealistic
In addition to a recapitalization of the bank before the sale, Ripplewood’s offer provided for a continued employment for two yearsenough to allow it to fit within the framework of the Florange law, which aims to avoid or limit the effects on employment of a site closure project.
But its recovery plan, focused on rapid growth in the number of customers and ambitious deposit collection, was unrealistic judgment, giving little guarantee of employment beyond two years. We are convinced that this decision is in the interest of employees and customersunderlines Orange Bank.
My French Bank after Orange Bank
The online banking market is very competitive in France, with few being 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 Stphane Richard in 2017 on the basis of banking activities purchased from the insurer Groupama. Orange Bank has since accumulated losses. The group is also entered into negotiations with BNP Paribaswhich 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 delegate.
Closure of Orange Bank: what awaits the 800,000 customers
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