Euler Hermes SA, the world's biggest credit insurer, has agreed to sell its 49.1 per cent stake in factoring business Eurofactor to Credit Agricole SA for about Ђ188 million (US$229 million). The purchase is subject to approval by regulators.
The two companies plan to complete the transaction, which values the whole of Eurofactor at Ђ383 million, by the end of the year, Euler's parent company Assurances Generales de France SA said in a statement.
Credit Agricole, France's biggest bank, already owns 49.1 per cent of Eurofactor. The unit returned to profit in 2003 with net income of Ђ 7.4 million, boosted by higher revenue and cost-cutting.
Assurances Generales de France SA has been selling holdings in smaller businesses to focus on insurance and consumer banking.
AGF is a unit of Munich-based Allianz AG, Europe's biggest financial services company.
Source; Bloomberg
