Societe Generale and Crédit Mutuel Arkéa signed a Memorandum of Understanding for the divestment of the retail business of Societe Generale Securities Services

Core Viewpoint - Societe Generale and Crédit Mutuel Arkéa have signed a Memorandum of Understanding for the divestment of Societe Generale Securities Services' Custody Account-Keeping activity focused on the French retail banking segment, which includes managing securities transactions and related services [1][2]. Group 1: Transaction Details - The acquisition will be executed by ProCapital, a subsidiary of Crédit Mutuel Arkéa, which specializes in Custody Account-Keeping and white-label investment solutions, allowing stakeholders to outsource securities activities in a compliant manner [2]. - ProCapital will become the securities services provider for Societe Generale's French Retail Network, BoursoBank, and Societe Generale Private Banking in France [2]. Group 2: Strategic Alignment - The divestment aligns with Societe Generale Securities Services' strategy to focus on wholesale clients, allowing for concentrated investments in securities services for these clients [3]. - Crédit Mutuel Arkéa views this acquisition as a key step in its Faire 2030 strategic plan, aiming to enhance its capabilities in Retail Securities Custody Account-Keeping and strengthen its position in the banking outsourcing market [3]. Group 3: Future Outlook - The transaction is subject to social/labor procedures and regulatory approvals, with an expected completion date in 2028 [3].