French financial services company BPCE has signed an agreement to acquire 50.1% stake in Oney Bank, a wholly owned subsidiary of Auchan Holding, following negotiations between the two companies in February 2019.
Image: BPCE Avant Seine building in France. Photo: Courtesy of Groupe BPCE.
BPCE and Auchan have agreed on a long-term partnership. The stake acquisition is expected to be completed in the second half of 2019, subject to regulatory approval from the French and European authorities.
Through the partnership, Oney Bank will be able to use the expertise of BPCE and Auchan to go ahead with its expansion plans. It also intends to strengthen its position in the payment solutions, financing, digital profiling and insurance segments across Europe.
BPCE stated that its own solutions and locations and those of Oney Bank are complementary to each other, which will enable BPCE to offer its expertise in specialized financial services, particularly in payment solutions.
Currently, Oney Bank operates in 11 countries, employing 3,000 people. It serves 7.6 million customers and works with 400 retailers and e-merchants.
Oney Bank claims to have enjoyed nearly 30 years of uninterrupted growth and posted a 5.6% increase in revenues for the six-month period ended June 2018.
In 2018, the bank announced its intention to expand in the European market in split payments and accelerated the international roll-out of omnichannel solution, which allows payment to be made in three or four installments. This solution is now available in five countries.
When the announcement was made regarding the exclusive negotiations with Auchan, BPCE said that the proposed transaction would support BPCE in starting its European development initiative in retail-focused digital banking and customer finance fields under Oney brand and for Oney Bank to leverage BPCE’s expertise, particularly in the payments area.
The French bank will support Oney by providing access to its full array of payments solutions, including payment services, access to the multi-channel platform developed by Natixis Paiements via Dalenys, Payplug and S’Money. Oney would also benefit from the group’s experience in payment card issuance.
In February, Groupe BPCE management board chairman and CEO Laurent Mignon said: “This partnership project marks a significant stage in Groupe BPCE’s European development ambitions. It is based on comprehensive strategic alignment, strong fit between our solutions and distribution channels, and shared long-term vision. I am particularly glad and confident that the Group is teaming up with a recognized player whose history and culture are perfectly in line with our own cooperative values.
“By harnessing our group’s strengths, Oney will have the means to continue its expansion as Groupe BPCE’s international retail bank.”