France’s Post Office bank says it is in exclusive talks with Societe Generale to provide consumer credit, in a deal which could boost SocGen’s retail bank business and La Poste’s plans for privatization, Reuters reports.
“A conclusion of a definitive agreement will be reached before the end of the year,” La Banque Postale says in a statement.
A consumer credit partnership would help SocGen as the French bank strives to bounce back from a rogue-trading scandal earlier this year, while the move also comes amid plans to privatize La Poste.
SocGen, France’s second-biggest listed bank, and La Poste had already signed a joint-venture agreement for processing electronic payments last year.
Lehman Brothers says in a research note earlier this week that a deal with La Poste would help boost SocGen’s Franfinance consumer financing arm but was unlikely to have a material impact on the group.
The full story is available at the Reuterss web-site.