Sofinco & Finaref

Type
Merger/Acquisition
Country
France
Region
Location of affected unit(s)
Sector
Financial / Insurance/ Estate
64 - Financial service activities, except insurance and pension funding
64 - Financial service activities, except insurance and pension funding
64 - Financial service activities, except insurance and pension funding
200 jobs
Number of planned job losses
Job loss
Announcement Date
12 October 2009
Employment effect (start)
1 January 2010
Foreseen end date
31 March 2010

Description

French banking group Crédit Agricole (CA) has announced that the merger of Sofinco and Finaref will entail some 200 job cuts between January and March 2010. Credit Agricole's management has decided to avoid direct dismissals and opt for internal relocation and voluntary departures.

Six closures are planned (Bastia, Mulhouse, Grenoble, Perpignan, Reims, Toulon) and restructuring in other cities. In October, the works council of Sofinco filed legal action to challenge the social plan. The merger of two subsidiaries should help to achieve €75 million of annual savings where restructuring costs amounts to approximately €60 million, according to the CA's CEO.

The two subsidiaries that are being run by a common directorate-general since 2008, will be merged  into one unit with about 4,000 employees in the first quarter of 2010.

Sources

Citation

Eurofound (2009), Sofinco & Finaref, Merger/Acquisition in France, factsheet number 69711, European Restructuring Monitor. Dublin, https://apps.eurofound.europa.eu/restructuring-events/detail/69711.