The Banques Populaires will be seven more

Acquisition - The Cooperative will redeem, for 2.1 billion euros, seven regional banks HSBC.
Since the end of 2002 and the acquisition of Credit Lyonnais by Credit Agricole, the landscape of banking in France has frozen, shared among seven national networks: Credit Agricole, Crédit Mutuel-CIC, savings banks The Company generally, Banques Populaires, BNP Paribas and Bank post. In this context, resale decided at the end of January by the British group HSBC seven of its regional banks Not at all appetites, even if it is a total "only" 400 agencies.

The operation could be hampered by the context of financial crisis. It would have been without counting with the ambitions of BNP Paribas, and especially two groups whose Mutual funds are more qu'intacts: Crédit Mutuel-CIC and Banques Populaires. On the line, the latter advised by Citi and Bredin Prat, took the decision by HSBC, supported by Goldman Sachs.

Seller and buyer have entered into exclusive negotiations yesterday for a transaction for which their firm offer is 2.1 billion euros, funded 85% from their own funds. The CEO of the cooperative group, Philip Smith, says the Figaro challenges of this operation.

LE FIGARO. -- How the seven regional banks put up for sale by HSBC you have they interested?

Philippe DUPONT. This acquisition, if it occurs, is for us a major strategic operation. It allows us to build on our heart trades, the bank individuals and SMEs. Better still, the seven banks involved mainly cover three regions of southern France (Aquitaine, Languedoc-Roussillon and Provence-Alpes-Côte d'Azur), where we want to develop ourselves precisely. We do not have today, on average, a market share of only 2% to 3%, ie half of what the group Banque Populaire is at the national level. With this operation, we will win more than two percentage points of market share, and even 8 in Savoie. We settle permanently in the fourth place of french banking networks with a total of 3350 branches. Such an opportunity, it does not rate.

And it is the 2.1 billion euros that you have offered to HSBC?

It is the right price. Anyone who meets the seller and that meets our own requirements. At 2.1 billion euros, we value these banks to a level comparable to the operations that have recently been concluded on the European market in terms of multiples of income in retail banking. By agency, we pay 5.3 million, which is very correct. Especially since these seven banks have some clear advantages: good marks, a fine fund trade, a return on equity of 17% in average incomes similar to ours per employee, and higher per customer. Finally, and this is not neutral nowadays they are in a situation of excess deposits and have strong capital ratios.

How these banks will they overlap in the organisation of the group People's Bank?

This operation is run by the Federal Reserve Bank of Banques Populaires, the central organ of the group. Ultimately, it will remain the owner of the Société Marseillaise de Credit, which is the largest of the seven, which covers several regions. The other six banks will gradually be connected to our regional banks on the same territories. In all cases, the brands will be maintained, as we have done in the past with the credit cooperative, for example. We will gradually switch each of these new facilities on our platform. An exercise that we have some experience because we realized 18 computer migration in the group over the past five years. The acquisition will be carried out in accordance with the social model of the group Banque Populaire and we wish to support at all levels on these teams banks. Finally, we will create opportunities for business development between the regional banks and our national subsidiaries and Foncia Natixis. Financially, we expect this operation about 300 million euros in synergies, net of the costs of migration.