Societe Generale announces an agreement for the sale of SG Finans to Nordea
Societe Generale announces the signing of an agreement to sell SG Finans AS, its equipment finance and factoring activities in Norway, Sweden and Denmark, to Nordea Finance, the asset based finance & factoring arm of Nordea Bank. Nordea is one of the largest financial services group in the Nordics and serves customers in four home markets - Denmark, Finland, Norway and Sweden.
The completion of the transaction is subject to the approval of the relevant local antitrust and financial supervisory authorities.
On completion, this transaction is expected to have a positive impact on the Group’s CET1 ratio of around 10 basis points. The transaction will also have a negative impact of around EUR 100 million on the Group’s 4th quarter 2019 results mainly due to goodwill impairment and fixed asset impairments. The closing is expected to take place during the second half of 2020.
Alongside the transaction, Societe Generale Equipment Finance (SGEF) and Nordea Finance have entered into a commercial partnership agreement that would encompass the provision of mutual services in vendor solutions and equipment finance. This partnership will leverage on the geographical complementarity and combined strengths of the two institutions to offer a wide range of products and services to international vendors that are clients of equipment finance solutions.
ALD Automotive, Societe Generale’s vehicle leasing and fleet management arm, and Nordea Finance already operate successfully a partnership to address mobility needs of corporates, SMEs and private individuals in Denmark, Finland, Norway and Sweden.
This new partnership agreement will reinforce the overall relationship between Societe Generale and Nordea.
Philippe Heim, Deputy Chief Executive Officer of Societe Generale group in charge of International Retail Banking activities, Financial Services and Insurance, comments: “With this agreement, Societe Generale makes once again a major step in the execution of its refocusing plan and demonstrates its ability to enter into long term partnerships. Societe Generale Equipment Finance is a leading player in equipment finance and Societe Generale will continue to leverage on SGEF’s ability to accompany its international vendors and clients and support the real economy.”
Press contacts:
Corentin Henry +33 1 58 98 01 75 corentin.henry@socgen.com
Antoine Lhéritier +33 1 42 13 68 99 antoine.lheritier@socgen.com