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HomeBanking & FinanceFrance’s SocGen to sell Moroccan business for EUR 745 million

France’s SocGen to sell Moroccan business for EUR 745 million

The transaction is subject to the usual condition’s precedent, including the approval of the relevant regulatory authorities

Societe Generale (SocGen) has agreed to sale to Moroccan conglomerate Saham Group of Société Générale Marocaine de Banques and La Marocaine Vie for $797.45 million (EUR 745 million) as part of a wider divestment strategy, lifting its shares by more than 2%.

The deal, which is expected to close by the end of the year, should result in a gain of about 15 basis points in SocGen’s CET1 ratio, a key measure of financial strength, the French lender said in a statement.

“Societe Generale is pursuing the implementation of its strategic roadmap through this divestment project. Over the last decades, Societe Generale has built a solid and recognised bank in Morocco serving more than one million clients,” said Slawomir Krupa, the CEO of Societe Generale Group.

“Societe Generale is fully committed to support the transition and is pleased to enter into a long-term partnership with Saham Group.”

The transaction is subject to the usual condition’s precedent, including the approval of the relevant regulatory authorities.

SocGen will take an accounting hit of EUR 75 million on its first-quarter earnings.

Saham Group would take over all the activities operated by these companies, as well as all client portfolios and employees.

The divestment is part of the execution of SocGen’s strategic roadmap presented in September 2023, targeting a streamlined, more synergetic and efficient business model, while strengthening the group’s capital base.

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