"We have a very important step in our international development." "Less than a year after launching our strategic plan, we have transformed our participations minority into equity control and extended our bank details in Italy and Greece operations, two of the fastest-growing European market", welcomed yesterday Georges Pauget, the General Director of Credit Agricole SA (Casa), the publication of the agreement between the French group and Banca Intesa.
Defining feature of these negotiations fits starts since more than a month between the two partners, the acquisition by Credit Agricole for a network of 654 agencies for a total of 5.96 billion, or slightly more than 9 million agency a significantly lower than the price paid by BNP Paribas to BNL (EUR 11 million) in February. This network, focused on the North of the Italy, will be formed of the points of sale of Cariparma (311) and FriulAdria (150). Other agencies, namely those from the own network of Banca Intesa (193), will be attached to one or other of the two banks according to their geographical positions. With nearly 1.4 million customers in total, this represents an overall GDP of EUR 1.3 billion, deposits and loans of over $ 20 billion and workforce of nearly 7,000 people.
130 million of synergies
"We will strengthen Cariparma and FriulAdria opening 100 additional agencies by 2010 and by working with them to accelerate their growth and their profitability," said Georges Pauget. "With this operation, international revenues represent more than 50 of the turnover of the Bank in 2008, which was one of our strategic objectives", he added. Synergies were valued at 130 million euros before taxes. They will be carried out by 2009. The costs related to the operation should, for their part, some 105 million euros.
For Casa, investment rises in fine to EUR 4.8 billion since it is going to enter in the capital of Cariparma, its new head of Italian bridge, at height of 70-80 regional caisses who wished to take a direct involvement of 10 and the remaining Cariparma Foundation between 10 and 20 and on the other hand controls 76 of FriulAdria. The operation will be financed by a capital increase of EUR 3 billion and the balance on the own funds. Casa thus plans to launch a program of 4 billion euros in the first half of 2007, $ 3 billion being reserved for this operation, the rest being designed to increase the Group's financial flexibility. Regional banks there will fully exercise their rights.
Interviewed by the "Financial Times", Georges Pauget yesterday refuted criticism of analysts as potential performance risks related to the acquisition of the Italian network Recalling the experience of Credit Agricole in mergers of regional banks. "I think that I have more that preserve our interests in Italy.". "I protected and strengthened", he said, estimating that the opportunity to acquire a banking network in Italy is well worth the risk to abandon its interests in Nextra: "If you consider the value of the assets in retail banking, they are much higher than in the management of assets."
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