This move comes after Worldline's shares dropped significantly in 2023 and the acquisition was made to help strengthen the partnership between the two companies. Worldline's shares rose by over 5% after the announcement.
According to the official announcement, in December 2023, there were already reports that Credit Agricole was looking to acquire a stake in Worldline. In response to the drop in share prices, Worldline has hired bankers to advise on a defence strategy to reassure shareholders and prevent a hostile takeover. The advisers have been sounding out potential investors, such as French financial institutions, about taking a minority stake in the company.
Moreover, Worldline's shares value decreased by over half in October due to a slowdown in the European economy and scrutiny by German regulators over money laundering controls. Then, Credit Agricole released a statement saying that the purchase of 7% of Worldline is intended to support the development and implementation of Worldline's strategy as a key European payment services provider.
Credit Agricole is an important financial conglomerate in France, together with BNP Paribas, Société Générale and Zay Groupe BPCE, forming the ‘big four’ or the big banks of the country.
As opposed to the Worldline drop, Credit Agricole faced a notable evolution in 2023. A report dated in November 2023 shows that France's second-largest listed bank, beat third-quarter earnings expectations, driven by a strong performance by its investment bank and retail activities. Its net income jumped 33% to EUR 1.75 billion, above the 1.37 billion expected by analysts in a company-compiled poll. Moreover, the listed entity of Credit Agricole Group, controlled by 39 French mutual banks, stated that revenue from its corporate and investment bank division rose by more than 9% propelled notably by a 25.6% jump in trading in fixed-income, currencies, and commodities (FICC).
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