Credit Agricole looking to sell Emporiki

1 October 2012

Credit Agricole has revealed it has held talks with Alpha Bank with regard to the sale of its Greek bank Emporiki.

The lender, which is the third largest in France, is looking to offload the financier for a symbolic disposal price of €1 ($1.28) in return for financing commitments, Reuters reports.

If the deal goes through, Credit Agricole's €2.3 billion recapitalization of Emporiki will rise to €2.85 billion, while it is to also subscribe to €150 million in convertible bonds, which are issued by Alpha Bank.

The French bank stated: "Credit Agricole deems that this transaction would assist it in reaching the solvency targets of the Credit Agricole group at 2013 year-end, as previously announced."

It claimed the agreement would prove of much assistance to the consolidation of the banking industry in Greece and be a vital part of the restructuring of the sector as the country looks to rebound from the financial crisis.

By Claire Archer

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