Credit Agricole Welcomes CITIC Securities as a Minority Shareholder in CLSA and Cheuvreux
Crédit Agricole CIB and the Chinese brokerage leader, CITIC Securities, announced the signing of an agreement whereby Crédit Agricole CIB is selling 19.9% of the equity stake in each CLSA and Crédit Agricole Cheuvreux to CITIC Securities.
This agreement is the result of discussions that began in April 2010. While the share of equity has changed since the initial discussions, the project is unchanged: jointly creating a leading global brokerage with a unique position in Asia and meeting the comprehensive demands of clients locally and internationally. More than a simple key stage in the building of a future global brokerage offer, this partnership is a unique occasion to make a lasting change to the positioning of the Crédit Agricole Group’s corporate and investment bank.
“By allying ourselves with a powerful partner, the leading broker in China, we will become a truly global player in the sector and, moreover, the door to the Chinese market is now open to us,” says Jean-Yves Hocher, Chief Executive Officer of Crédit Agricole CIB.
This combination fully meshes with the Crédit Agricole Group’s universal retail banking plans: proposing its services wherever it is present across all business lines and to all types of clients including those of the corporate and investment bank. Confronted with its clients’ growing internationalisation, the combination of the brokers will enable consolidating Crédit Agricole CIB’s equities strategy and focusing the efforts of the Bank on large accounts in France and abroad in line with the “Commitment 2014” development plan.
“For our large clients, be they companies or investors, we need to have a brokerage activity of very high quality recognised worldwide. We will serve their needs even better with a global entity,” says Jean-Paul Chifflet, Chairman of Crédit Agricole CIB and Chief Executive Officer of Crédit Agricole S.A.
Subject to approval by the relevant regulatory authorities and the required consultations, it is expected that the transaction will close on December 31, 2011.