Crédit Agricole reaches conditional agreement to acquire Kas Bank for £163m

Crédit Agricole has reached a conditional agreement to acquire Kas Bank for €188m (£163m) in order to greater export its expertise in servicing institutional investors, including pension funds, across European markets serviced by Crédit Agricole.

Crédit Agricole’s all-cash public offer was worth €12.75 per share and represents a premium of 110 per cent over the closing price of Kas Bank on 22 February 2019.

The offer has received unanimous support from the managing board and supervisory board of Kas Bank and is expected to be completed in Q3 2019, subject customary conditions, including approvals from the Dutch Central Bank and European Central Bank.

Crédit Agricole will fund the transaction from its own finances and has agreed on an integration plan with Kas Bank for the period after the completion of the offer.

Commenting on the announcement, Kas Bank chairman of the managing board, Sikko van Katwijk said: “The agreement we reached today marks the start of a new era for all of us. Teaming up with Crédit Agricole increases our competitive strength and enhances our investment and innovation power in a market where scale is an increasingly important factor.

“Our Dutch, German and UK clients will benefit from the critical size with more than €2.8trn assets under custody, the solid capital position and the extended product range this combination will bring.”

The agreement will see Kas Bank become Crédit Agricole’s “global centre of excellence for pension fund business”, and hopes that it will improve Crédit Agricole’s pension fund offering around the globe.

Crédit Agricole CEO, Jean François Abadie added: “Crédit Agricole will further strengthen its expertise in servicing institutional investors such as pension funds and insurance companies, in order to distribute these services on a global basis.

“The combination is anticipated to create value for our shareholders and will broaden and deepen our offering in Europe. We are convinced that the offer is in the interests of both companies’ stakeholders.”

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