Cerberus working with Goldman on possible sale of French bank CCF, sources

General Electric

Today 15:43

By Amy-Jo Crowley and Valentina Za
LONDON, Nov 2 (Reuters) - Cerberus Capital Management is working with Goldman Sachs on the potential sale of its Groupe CCF French banking business, two people with knowledge of the matter told Reuters, with a process expected to formally start within weeks.
The possible sale of CCF by Cerberus coincides with concerns over French finances and a looming general election which have taken their toll on the country's government bonds, with 10-year yields hitting their highest level since the early 2000s.
"CCF does not comment on rumours. The bank remains fully focused on pursuing the commercial momentum it has built," a representative for the French bank told Reuters.
     Representatives for both Cerberus and Goldman Sachs declined to comment.
French banks have a modest exposure to the country's government debt and investors have mainly highlighted higher funding costs for the sector as a fallout of the bond selloff. 
French newspaper Le Figaro reported in April that investment bankers had begun contacting potential buyers to gauge interest in CCF, but a formal sale process had not been launched.
CCF dismissed that report, saying it was pursuing a long-term strategy to build a bank focused on wealth management. 
Cerberus began building a banking operation in France in 2016 when it agreed to buy GE Money Bank France. The US investment firm then renamed its French banking operations My Money Bank in March 2017 when it completed the deal.
In 2021, Cerberus moved to expand its presence by agreeing to buy HSBC's HSBA.L French retail bank, comprising 244 branches and around 3,900 staff, for a token price of €1.
The deal, completed in January 2024, led to My Money Group being renamed Groupe CCF, in a revival of the 100-year-old Credit Commercial de France brand previously owned by HSBC.
CCF says it has €31 billion of assets, including about two thirds in loans, and net banking income of €806 million.
Since 2023, CCF has been led by Niccolo Ubertalli, a former top executive at UniCredit CRDI.MI who left Italy's second-biggest bank in 2022 after falling out with CEO Andrea Orcel.
($1 = 0.8948 euros)  

(Reporting by Amy-Jo Crowley in London and Valentina Za in Milan; Editing by Alexander Smith)
((valentina.za@thomsonreuters.com; +39 02 6612 9526;))