Orange To Buy 65% Stake In Groupama Banque For Mobile Banking

(RTTNews) - French telecommunications operator Orange SA (ORAN) signed an agreement with Groupama to a 65% stake in Groupama Banque, which will become Orange Bank. Groupama will retain the remaining 35%. With the deal, Orange aims to enable the development of an innovative, 100% mobile banking service first in France and then in Spain and Belgium.

Following the deal, the bank, for which the legal entity should become Orange Bank, will launch a banking service specifically designed for mobile usage in France at the beginning of 2017. The bank's service will be marketed under each companies brand within their own distribution network.

The company aims to complete the deal during the third quarter of 2016, subject to the approval of the relevant controlling authorities.

This agreement concludes the exclusive discussions that have been ongoing between the two Groups since January.

Stéphane Richard, Chairman and Chief Executive Officer of Orange, said, "This agreement is a major step forward in our ambition to diversify into mobile financial services as we outlined in our Essentials2020 strategy. Groupama Banque will bring an existing banking structure as well as considerable experience in managing customer relations remotely within a banking context."