SocGen to sell Morocco banking, insurance units for nearly $800m
TLDR
- Societe Generale sells majority stake in Société Générale Marocaine de Banques to private investor Saham Group to streamline operations and enhance synergy.
- Sogecap, the group's insurance arm, to divest interests in La Marocaine Vie as part of the restructuring roadmap outlined by Societe Generale.
- Valued at €745 million, the deal aims to strengthen Societe Generale's capital base and boost its Common Equity Tier 1 (CET1) ratio by approximately 15 basis points post-completion in late 2024.
Societe Generale has inked a deal to offload its 57.67% stake in Société Générale Marocaine de Banques, along with its subsidiaries, to private investor Saham Group. Sogecap, the group's insurance arm, will also divest its interests in La Marocaine Vie.
This move aligns with Societe Generale's broader roadmap outlined in September 2023, aimed at streamlining operations, enhancing synergy, and fortifying the Group's capital base. In December, we reported that it would sell its subsidiaries in Burkina Faso and Mozambique to the pan-African banking group Vista Group.
Valued at €745 million ($792 million), the transaction is anticipated to bolster the Group's Common Equity Tier 1 (CET1) ratio by around 15 basis points upon completion, slated for the end of 2024.
Key Takeaways
Societe Generale's divestment in several African businesses, alongside previous sales in countries like Congo Brazzaville, Equatorial Guinea, Mauritania, and Chad, underscores a broader strategic shift in its operational focus under CEO Slawomir Krupa's leadership. This decision aligns with the bank's goal of optimizing capital allocation. Societe Generale's move reflects a wider trend among European banks, with Barclays, Standard Chartered, and BNP Paribas also reducing their presence in Africa. Barclays' exit from South African bank Absa after nearly a century, Standard Chartered's withdrawal from five African nations, and BNP Paribas' gradual retreat from sub-Saharan Africa all signal a reevaluation of priorities and a shift towards more strategic market allocations.
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