Credit Agricole, one of France’s leading financial conglomerates, has announced a strategic acquisition of a 7% stake in the payment processing company Worldline. This move follows a significant decline in Worldline’s share value in 2023, and the acquisition is aimed at reinforcing the partnership between the two entities. Following the announcement, Worldline’s stock experienced a more than 5% increase.
The Paris-based payments processor Worldline has lined up bankers to advise on a defence strategy to reassure shareholders and avoid a hostile takeover, Reuters reported last week. The market value of Worldline shares more than halved in October when it cut its financial targets amid scrutiny by German regulators over money-laundering controls. Thus, the acquisition aligns with Worldline’s broader strategy to stabilize its operations amidst challenging market conditions.
Reports from December 2023 indicated Credit Agricole’s interest in acquiring a portion of Worldline, particularly after the payment company’s shares faced a steep drop. As part of this strategy, the company has been exploring partnerships with French financial institutions for minority stakes.
Credit Agricole’s statement underscored its commitment to aiding Worldline’s growth and operational strategy, emphasizing the bank’s support for Worldline‘s role as a pivotal European payment services provider. Additionally, the two companies had previously agreed to a joint venture targeting the EUR 700 billion French merchant sales market, with operations set to commence this year.
Credit Agricole itself has seen a contrasting trajectory compared to Worldline. In 2023, the bank, which is among France’s ‘big four’ alongside BNP Paribas, Société Générale, and Zay Groupe BPCE, reported a robust financial performance. France’s second-largest listed bank exceeded Q3 2023 earnings expectations, driven by its investment banking and retail activities. Its net income surged by 33% to EUR 1.75 billion, surpassing analysts’ expectations.
