By Swann Collins, investor and consultant in global affairs. Eurasia Business News – November 15, 2021
Sunrise on Manhattan, New York city. Photo credits : Swann Collins.
French BNP Paribas would be seeking to separate from its American subsidiary Bank of the West . According to ‘Reuters’, which quotes sources familiar with the matter, the French bank has asked JP Morgan and Goldman Sachs to work on this potential sale and to test the appetites of potential buyers.
The French bank would seek to pull out of the US retail banking market where it has battled to compete with rivals bigger and better capitalized.
BNP Paribas, which overtook Britain’s HSBC last year to become Europe’s largest bank by assets, is looking to part ways with its San Francisco-based retail banking subsidiary in a deal that could value it at about $15 billion, three sources with knowledge of the matter said to Reuters.
Discussions are still at an early stage and no deal is certain, said the sources.
The California-based Bank of the West, with $99.2 billion of assets as of June 30, ranks as BNP’s biggest business outside Europe.
The transaction would allow Jean-Laurent Bonnafé, CEO of BNP Paribas, to raise financial resources for its expansion in Europe where the European Central Bank has called on the banking sector to consolidate to catch up with American and Chinese banks. in terms of profitability.
To secure a successful sale of the business, BNP would have to overcome a number of challenges, the sources noted.
On the Paris Stock Exchange, BNP Paribas share gained 3.29 % and was worth 61.220 € at 5:39 p.m.
Credit Suisse announced on November 8 that it had reached a recommendation agreement with BNP Paribas following the Swiss bank’s decision to exit prime brokerage activities and certain derivatives following the scandal Archegos.
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© Copyright 2021 – Swann Collins, investor and consultant in global affairs.