March 11, 2013 / 3:11 PM / 5 years ago

UPDATE 1-Credit Agricole to pay 70 mln euros to unload Cheuvreux-source

* Kepler to pay 30 mln euros for brokerage

* Credit Agricole pays 100 mln euros for job cut costs

* Deal to close March 22 (Adds background, details)

By Matthias Blamont

PARIS, March 11 (Reuters) - Credit Agricole will close the sale of its Cheuvreux brokerage unit to Kepler Capital Markets on March 22, with the deal ultimately costing the bank 70 million euros when restructuring costs are included, according to a source close to Cheuvreux.

Credit Agricole first announced in July that it was in talks to sell Cheuvreux to Kepler, but the agreement, in which the French semi-cooperative bank would remain a strategic shareholder in the new group, has taken months to complete.

Although Kepler is nominally paying 30 million euros ($38.94 million) for the unit, Credit Agricole will shoulder 100 million euros of restructuring costs related to layoffs of French staff at Cheuvreux, the source said.

A Credit Agricole spokeswoman declined to comment.

Including operational losses at Cheuvreux in 2012, Credit Agricole’s total writedown for the sale will climb to 192 million euros from 181 million announced in the third quarter, the source said.

The restructuring will pay for 290 planned job cuts at Cheuvreux in France, where the brokerage now has about 360 employees.

The Cheuvreux sale was a part of a wider programme of divestments undertaken by Credit Agricole to scale down its investment banking activities and focus attention on its French retail banking operations.

$1 = 0.7703 euros Reporting By Matthias Blamont; Writing by Christian Plumb; Editing by Leila Abboud

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below