BGFIBank gets regulatory nod to acquire Société Générale Congo

AFRICAN STOCKS AND FINANCEJuly 1, 2024 at 1:03 PM UTC

TLDR

BGFIBank gains COBAC approval to acquire Société Générale Congo, becoming the exclusive shareholder.
Acquisition involves purchasing 93.47% shares from Société Générale and the remaining 6.53% from the Congolese State.
The transaction, valued at 33.8 billion FCFA, solidifies BGFIBank's dominance in the Congolese banking sector and enhances its presence in Central Africa.

The BGFIBank group has received authorization from the Central African Banking Commission (COBAC) for its Congolese franchise to take over Société Générale's operations in the country.

With this acquisition, BGFIBank will become the sole shareholder of Société Générale Congo, having purchased 1,108,520 shares (93.47%) from the French group and the remaining 6.53% held by the Congolese State.

The transaction, valued at 33.8 billion FCFA (around $55.2 million), allows BGFIBank to consolidate its leadership in the Congolese banking market and strengthen its position in Central Africa.

Key Takeaways

BGFIBank Congo, the leading bank in the country with nearly 40% market share, benefited significantly from the Congolese government's involvement in the transaction. The government played a key role in facilitating the sale of Société Générale's subsidiary to BGFIBank and had opposed the sale to the Burkinabe group Vista, favoring BGFIBank due to its "in-depth understanding of the local market" and the "historical relations" it maintains with the Congolese state. This strategic decision underscores the government's preference for a partner with a strong local presence and established connections.

Congo

Congo Brazzaville

Société Générale

BGFIBank

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