(16 April 2024 – France) Société Générale has announced the divestment of its equipment finance division to rival Groupe BPCE for €1.1 billion.
The major French lender announced a Memorandum of Understanding (MOU) for the sale of its professional equipment financing division. Total receivables under the agreement for one of France’s largest banks stands at approximately €15 billion as of December 2023.
The sale forms part of a wider group strategy within SocGen to simplify and streamline its operations, targeted as a core focus of the group’s September 2023 strategy update. The sale is expected to be completed in Q1 2025.
“We affirmed Société Générale’s ambition to be a rock-solid and sustainable top tier European bank. We announced that the Group would take strategic decisions to simplify its business portfolio and shape a more integrated, competitive and synergetic business model” commented Société Générale CEO Slawomir Krupa.
“The signing of the Memorandum of Understanding with Groupe BPCE for the sale of SGEF's activities illustrates the strategic roadmap’s execution that creates value for all our stakeholders” added Mr Krupa.