Bulletin: Credit Agricole, Through Core Subsidiary CACEIS, Pushes To Diversify Further With The Proposed KAS Bank Acquisition

PARIS (S&P Global Ratings) Feb. 27, 2019--S&P Global Ratings said today that the proposed acquisition of Netherlands-based KAS Bank by Credit Agricole S.A. (A+/Stable/A-1), through its fully owned subsidiary CACEIS, marks another step in the French banking group's selective geographic and business diversification strategy. Because the proposed cash offer of €12.75 per security, valuing KAS Bank at €188 million, is relatively modest for a group of Credit Agricole's size, we do not anticipate any adverse impact on the French banking group's credit quality, notably capital, at this time. We understand that CACEIS will finance the proposed acquisition with its own funds. At end-2018, CACEIS had €2,633 billion of assets under custody, compared with €197 billion at KAS Bank. Since KAS

...PARIS (S&P Global Ratings) Feb. 27, 2019--S&P Global Ratings said today that the proposed acquisition of Netherlands-based KAS Bank by Credit Agricole S.A. (A+/Stable/A-1), through its fully owned subsidiary CACEIS, marks another step in the French banking group's selective geographic and business diversification strategy. Because the proposed cash offer of 12.75 per security, valuing KAS Bank at 188 million, is relatively modest for a group of Credit Agricole's size, we do not anticipate any adverse impact on the French banking group's credit quality, notably capital, at this time. We understand that CACEIS will finance the proposed acquisition with its own funds. At end-2018, CACEIS had 2,633 billion of assets under custody, compared with 197 billion at KAS Bank. Since KAS Bank's management and supervisory board unanimously support the offer, we believe there is a high likelihood the acquisition will proceed and, upon receipt of regulatory approvals, be completed toward the end of this...

Bulletin