Credit Agricole Succeeds in Credito Valtellinese Takeover
By Mauro Orru
Credit Agricole SA said late Friday that its Italian subsidiary
Credit Agricole Italia SpA now owns more than 90% of Italian lender
Credito Valtellinese SpA, after months of resistance over its
The French bank said its Italian subsidiary had around 91.17% of
Credito Valtellinese's share capital, above its 90% threshold
The announcement comes days after Credit Agricole sweetened its
offer, agreeing to pay a total consideration of 12.50 euros
($15.12) a share cum dividend, valuing Credito Valtellinese at
roughly EUR876.9 million.
Credit Agricole launched a bid in November for its Italian
subsidiary to take over Credito Valtellinese at EUR10.50 a share,
but the offer faced resistance from some Credito Valtellinese
shareholders amid concerns the price undervalued the Italian
The French bank said it expected the deal to be accretive to its
earnings per share from 2022, with a return on investment above 10%
by the third year after the deal, solely including cost and funding
synergies. Credit Agricole's common equity tier 1 ratio is
projected to lose 20 basis points.
Write to Mauro Orru at firstname.lastname@example.org; @MauroOrru94
(END) Dow Jones Newswires
April 26, 2021 01:51 ET (05:51 GMT)
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