Crédit Agricole Italia, a majority-owned subsidiary of Crédit Agricole, has placed a voluntary public tender offer to buy all ordinary shares of Credito Valtellinese, for $875m in cash.
The Italian bank will acquire 100% of Credito Valtellinese, at an offer price of €10.50 ($12.48) per Credito Valtellinese share.
With the acquisition of Credito Valtellinese, Crédit Agricole Italia is expected to strengthen its competitive positioning in Italy, which is the company’s second domestic market.
As of September 2020, Credito Valtellinese’s total assets on balance sheet stood at €24bn. Through a network of 355 branches, it serves nearly 0.7 million clients.
Crédit Agricole Italia president Ariberto Fassati said: “Credito Valtellinese shares with us many of the fundamental values that represent the raison d’être of Crédit Agricole Italia: the rootedness to the territory, the attention to local communities and to the social and entrepreneurial networks, the enrichment of people and the sustainability of the business model.”
Crédit Agricole Italia to merge Credito Valtellinese after the offer period
Crédit Agricole Italia has previously received a commitment letter from UK-based asset management firm Algebris, for the sale of 5.4% stake in Credito Valtellinese to Crédit Agricole Italia, subject to regulatory approval.
In relation to the transaction, Crédit Agricole Assurances, a subsidiary of Crédit Agricole would also sell around 9.8% stake in Credito Valtellinese to Crédit Agricole Italia.
Once the offer completes, Crédit Agricole Italia intends to go ahead with the merger of Credito Valtellinese, allowing effective integration of its activities with those of the Credito Valtellinese.
The deal is expected to enable Crédit Agricole Italia to have presence in the most productive areas of Italy, especially in Lombardy, where more than 40% of Credito Valtellinese branches are located.
Currently, Crédit Agricole Group serves 4.5 million customers in Italy, through more than 1,000 branches.
Crédit Agricole Italia chief executive officer Giampiero Maioli said: “With this transaction, Credito Valtellinese’s customers and employees will gain access to the same first-class financial products and services as Crédit Agricole Italia, benefitting from Crédit Agricole Group’s scale, strength, innovative and client-centric culture, and the combined group will continue its strong commitment to supporting Italy and the local communities.”
