AIRLINK 189.52 Decreased By ▼ -0.64 (-0.34%)
BOP 12.77 Decreased By ▼ -0.06 (-0.47%)
CNERGY 7.16 Decreased By ▼ -0.05 (-0.69%)
FCCL 42.12 Decreased By ▼ -1.29 (-2.97%)
FFL 15.54 Increased By ▲ 0.15 (0.97%)
FLYNG 25.19 Decreased By ▼ -1.18 (-4.47%)
HUBC 130.09 Decreased By ▼ -0.52 (-0.4%)
HUMNL 14.32 Increased By ▲ 0.48 (3.47%)
KEL 4.67 Decreased By ▼ -0.04 (-0.85%)
KOSM 6.51 Decreased By ▼ -0.19 (-2.84%)
MLCF 46.94 Decreased By ▼ -2.57 (-5.19%)
OGDC 202.75 Decreased By ▼ -2.06 (-1.01%)
PACE 6.44 Increased By ▲ 0.03 (0.47%)
PAEL 41.14 Increased By ▲ 0.33 (0.81%)
PIAHCLA 17.03 Increased By ▲ 0.18 (1.07%)
PIBTL 8.71 Increased By ▲ 0.02 (0.23%)
POWER 10.70 Decreased By ▼ -0.32 (-2.9%)
PPL 172.21 Decreased By ▼ -2.23 (-1.28%)
PRL 34.77 Increased By ▲ 0.06 (0.17%)
PTC 24.85 Decreased By ▼ -0.14 (-0.56%)
SEARL 96.72 Decreased By ▼ -1.27 (-1.3%)
SILK 1.10 Increased By ▲ 0.01 (0.92%)
SSGC 30.58 Decreased By ▼ -0.52 (-1.67%)
SYM 17.89 Increased By ▲ 0.08 (0.45%)
TELE 8.40 Increased By ▲ 0.10 (1.2%)
TPLP 11.89 Decreased By ▼ -0.29 (-2.38%)
TRG 63.35 Increased By ▲ 1.69 (2.74%)
WAVESAPP 11.63 Decreased By ▼ -0.04 (-0.34%)
WTL 1.50 Increased By ▲ 0.02 (1.35%)
YOUW 4.05 Decreased By ▼ -0.13 (-3.11%)
AIRLINK 189.52 Decreased By ▼ -0.64 (-0.34%)
BOP 12.77 Decreased By ▼ -0.06 (-0.47%)
CNERGY 7.16 Decreased By ▼ -0.05 (-0.69%)
FCCL 42.12 Decreased By ▼ -1.29 (-2.97%)
FFL 15.54 Increased By ▲ 0.15 (0.97%)
FLYNG 25.19 Decreased By ▼ -1.18 (-4.47%)
HUBC 130.09 Decreased By ▼ -0.52 (-0.4%)
HUMNL 14.32 Increased By ▲ 0.48 (3.47%)
KEL 4.67 Decreased By ▼ -0.04 (-0.85%)
KOSM 6.51 Decreased By ▼ -0.19 (-2.84%)
MLCF 46.94 Decreased By ▼ -2.57 (-5.19%)
OGDC 202.75 Decreased By ▼ -2.06 (-1.01%)
PACE 6.44 Increased By ▲ 0.03 (0.47%)
PAEL 41.14 Increased By ▲ 0.33 (0.81%)
PIAHCLA 17.03 Increased By ▲ 0.18 (1.07%)
PIBTL 8.71 Increased By ▲ 0.02 (0.23%)
POWER 10.70 Decreased By ▼ -0.32 (-2.9%)
PPL 172.21 Decreased By ▼ -2.23 (-1.28%)
PRL 34.77 Increased By ▲ 0.06 (0.17%)
PTC 24.85 Decreased By ▼ -0.14 (-0.56%)
SEARL 96.72 Decreased By ▼ -1.27 (-1.3%)
SILK 1.10 Increased By ▲ 0.01 (0.92%)
SSGC 30.58 Decreased By ▼ -0.52 (-1.67%)
SYM 17.89 Increased By ▲ 0.08 (0.45%)
TELE 8.40 Increased By ▲ 0.10 (1.2%)
TPLP 11.89 Decreased By ▼ -0.29 (-2.38%)
TRG 63.35 Increased By ▲ 1.69 (2.74%)
WAVESAPP 11.63 Decreased By ▼ -0.04 (-0.34%)
WTL 1.50 Increased By ▲ 0.02 (1.35%)
YOUW 4.05 Decreased By ▼ -0.13 (-3.11%)
BR100 11,865 Decreased By -96.2 (-0.8%)
BR30 35,321 Decreased By -314 (-0.88%)
KSE100 112,801 Decreased By -938.2 (-0.82%)
KSE30 35,036 Decreased By -291.2 (-0.82%)
Business & Finance

Credit Agricole secures two-thirds acceptance in $1bn takeover bid for Creval

  • The acquisition allows the Italian arm of France's no.2 bank to double its market share in Italy's wealthiest areas when at a time when the country's fragmented banking sector is consolidating.
  • The bid was conditional on the two-thirds threshold which guarantees approval of extraordinary shareholder resolutions at meetings, allowing Credit Agricole Italia to absorb Creval and maximise projected savings.
Published April 23, 2021

MILAN: Credit Agricole has secured its $1 billion buyout bid for Creval after shareholders accounting for two-thirds of the Italian bank's stock accepted the offer, a person close to the matter said.

The acquisition allows the Italian arm of France's no.2 bank to double its market share in Italy's wealthiest areas when at a time when the country's fragmented banking sector is consolidating.

To overcome opposition from Creval and many of its shareholders, Credit Agricole Italia raised the price of its all-cash bid for an investment of up to 855 million euros ($1.0 billion) in its biggest overseas market.

The offer closes on Friday and official results will be known after 1530 GMT. But the source said shareholders accounting for more than 66.7% of Creval's capital had tendered their shares, sharply up from around 48% on Thursday.

The bid was conditional on the two-thirds threshold which guarantees approval of extraordinary shareholder resolutions at meetings, allowing Credit Agricole Italia to absorb Creval and maximise projected savings.

Credit Agricole had reserved the right to go ahead even with just 50% plus one share, but the best case scenario for the French lender is to top the 90% threshold which would trigger a residual buyout of Creval shares ahead of a delisting.

To boost take-up, Credit Agricole Italia in mid-April lifted the price by 16% to 12.2 euros, saying it would pay a further 0.30 euros a share only if more than 90% of capital was tendered.

With acceptance still low, Credit Agricole Italia waived the 90% threshold and set the final price at 12.5 euros, while extending the offer through Friday.

Credit Agricole entered Italian retail banking in 2007, buying two northern banks and adding three small failing banks a decade later, while its asset manager Amundi bought rival Pioneer from UniCredit for 3.6 billion euros.

Its latest move comes after Intesa last year snatched rival UBI in an unsolicited takeover to create a national champion with a fifth of the banking market.

Comments

Comments are closed.