Société Générale’s subsidiary, Boursorama, has entered into exclusive negotiations for the takeover of ING’s retail banking activities in France.
PARIS (Reuters) – Societe Generale announced on Tuesday exclusive discussions for the takeover of ING’s retail banking activities in France, a transaction that would boost the growth of its online banking subsidiary Boursorama.
The Dutch bank announced at the end of December its intention to leave retail banking in France, where it did not reach the desired size, and said it was conducting discussions with “third parties”.
Societe Generale said on Tuesday that the final agreement with ING would cover day-to-day banking (current accounts and bank cards), passbooks, life insurance and stock market accounts. Home loans would continue to be managed by ING.
Maintaining consumer loans at ING is under study, indicate SocGen and the Dutch bank, which, in a separate press release, specifies that for the time being, its customers in France have no action to take.
Societe Generale says it is considering reserved welcome offers and simplified subscription for ING customers who wish to become Boursorama customers.
“Signing this agreement would allow us to further accelerate Boursorama’s very strong growth trajectory,” Societe Generale CEO Frédéric Oudéa said in the statement.
In 2021, Boursorama recruited more than 800,000 new customers and claimed a total of more than three million. The bank aims to increase this figure to more than 4.5 million in 2025.
Societe Generale, which wishes to reach a definitive agreement with ING by April 2022 at the latest, specifies that the operation would have a “very limited” impact on its CET1 solvency ratio.
ING has been present in retail banking in France since 2000 and has approximately one million customers in the country. Its restructuring in France resulted in a social plan concluded with the unions concerning 460 employees.
The Dutch bank will remain present in France in corporate and investment banking with the aim of consolidating its market position and its positioning in terms of sustainable finance.
On the Paris Stock Exchange, Societe Generale shares gained 1.05% in the first exchanges while ING shares rose 1.24% in Amsterdam.
(Report Blandine Hénault, edited by Bertrand Boucey)
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