Credit Agricole to Acquire Three Italian Savings Banks for EUR130 Million

Credit Agricole SA (ACA.FR) said Friday that it would pay 130 million euros ($153 million) to buy three Italian savings banks in an agreement with the Italian Interbank Deposit Protection Fund.

The French bank is buying more than 95% of the capital in the Cesena, Rimini and San Miniato saving banks following negotiations over the summer.

As part of the agreement, the Italian fund's voluntary scheme, an instrument used to resolve banking crises, will bolster the capital of the three banks to strengthen their CET1 ratio, a measure of capital strength.

The banks' portfolios of bad loans, which total around EUR3 billion, will be securitized with the help of Italian banking fund Fund Atlante II or sold to private investors, Credit Agricole said.

Credit Agricole expects the transaction to be completed by the end of 2017.

Write to Pietro Lombardi at pietro.lombardi@dowjones.com

(END) Dow Jones Newswires

September 29, 2017 12:49 ET (16:49 GMT)