Telecoms company Orange to buy Groupama’s stake in its online banking unit

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PARIS, Oct 1 (Businesshala) – France’s largest telecommunications conglomerate Orange (ORAN.PA) said it will buy insurer Groupama’s 21.7% stake in Orange Bank, its online banking arm, and give the bank 230 million euros ($266.4 million). ) will also be provided. capital increase.

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“To spur Orange Bank’s growth, Orange is continuing to invest in its Bank,” Orange said in a statement.

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Businesshala reported in early March that Orange was looking for a new investor in its banking unit.

Orange CEO Stephen Richard said in April that the search for a new investor did not mean the group wanted to sell its banking unit, adding that the telecom company would continue in the venture “on its own” if The groupma wants to move out and if it does so cannot find another partner.

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French media reported in the summer that BNP Paribas (BNPP.PA) and Société Générale (SOGN.PA) were interested in buying the stake, but Orange ended the discussions, considering the banks’ demands too high.

Orange will now own 100% of its banking unit. It did not say how much it paid Groupama for its stake.

It also said Orange Bank, which was launched four years ago and now has 1.6 million customers in France and Spain, will “significantly” reduce its losses in 2021, partly due to a 57% increase in its net banking income. Thank You for. compared to the first half of 2021 versus the same period in 2020.

($1 = 0.8635 Euro)

Reporting by Benoit van Overstraeten; Editing by Sudeep Kar-Gupta

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