Societe Generale has signed a Memorandum of Understanding with Groupe BPCE for the purpose of selling the activities of Societe Generale Equipment Finance.

The Board of Directors of Societe Generale, which met on 10 April 2024 under the chairmanship of Lorenzo Bini Smaghi, has approved the signing of an agreement. Memorandum of understanding With Groupe BPCE for the divestiture of professional equipment financing businesses operated by Société Generale Equipment Finance (SGEF)*.

Group BPCE will acquire most of the activities of Société General Equipment Finance, which provides specialized financing and leasing solutions for distributors, traders, manufacturers and companies. SGEF deploys its expertise internationally in the transportation, industrial equipment, technology, medical and renewable energy sectors. outstanding debts of businesses covered under Memorandum of understanding The amount at the end of December 2023 amounts to approximately €15 billion, i.e. approximately €8 billion in risk-weighted assets (RWA).

This divestment project will be an important step in the execution of Societe Generale's strategic roadmap presented in September 2023, which will target a streamlined, more synergistic and efficient business model while strengthening the group's capital base. The transaction will be valued at €1.1 billion and will have a positive impact of approximately 25 basis points on the Group's CET1 ratio at the closing date which should be in the first quarter of 2025.

Sławomir Krupa, Chief Executive Officer of Societe Generale Group notes: “During the presentation of the Group's strategy to September 2023, we reaffirmed Societe Generale's ambition to become a strong and sustainable top-tier European bank. We announced that the Group will seek to simplify its business portfolio and shape a more integrated Will take strategic decisions, competitive and synergistic business model. The signing of the MoU with Groupe BPCE for the sale of SGEF's activities reflects the execution of the strategic roadmap that creates value for all our stakeholders.

For Odile de Sèvre, Chief Executive Officer of Société Générale Equipment Finance, “Within Société Générale, SGEF has developed its international activities to achieve a unique geographical coverage. SGEF employees are recognized experts who work with our clients and partners to create innovative equipment financing solutions. Proposed With the Groupe BPCE project, I am pleased to make a beginning. Thanks to the strong alignment of our activities, the new chapter is strongly oriented towards growth.

The project will be subject to the applicable social/labor procedures, the foregoing general conditions and the approval of the relevant financial and regulatory authorities. Societe Generale remains fully committed to its employees, customers and partners during this transition period.

*Only the activities of the Czech Republic and Slovakia will remain part of Société Générale.

Press Contact:
Jean-Baptiste Froville_+33 1 58 98 68 00_ jean-baptiste.froville@socgen.com
Amandine Grison_+33 1 41 45 92 40_ amandine.grison@socgen.com