French bank Societe Generale said on Wednesday it was in talks to sell its controlling stake in Egyptian unit National Societe Generale Bank to Qatar National Bank, as Europe’s lenders retrench from expansion abroad.
SocGen owns 77.17 percent of NSGB, which has a market capitalisation of $2.3 billion. The French bank is selling assets such as fund-management unit TCW as it tries to keep up with peers amid an industry-wide race to beef up capital.
“The discussions are preliminary and there can be no certainty as to whether an agreement will be reached,” SocGen said. “There will be other announcements in case of further developments.”
Shares of SocGen rose 0.1 percent, at 20.87 euros. The STOXX Europe 600 bank index was down 0.6 percent. NSGB shares ended the day up 0.2 percent.
SocGen’s domestic arch-rival BNP Paribas is also said to be seeking preliminary bids for its Egyptian retail banking business, sources have told Reuters, in a deal likely to generate $400 million.
Qatar National Bank, the largest lender in the Gulf Arab state, is one of the parties which has expressed initial interest, one source said.
Reuters
