Societe Generale agrees SG Finans sale to Nordea

Societe Generale has finalised an agreement to sell SG Finans AS, its equipment finance and factoring activities in Norway, Sweden and Denmark.

The company is selling to Nordea Finance, the asset-based finance and factoring arm of Nordea Bank.

Nordea is one of the largest financial services group in the Nordics and serves customers in four home markets – Denmark, Finland, Norway and Sweden.

Completion of the transaction is subject to approval of all the relevant local antitrust and financial supervisory authorities.

The transaction is expected to have a positive impact on the groups CET1 ratio of approximately ten points.

It is also expected to have a negative impact of around €100 million on the group’s Q4 results due to goodwill impairment and fixed asset impairments. The closing is expected to take place during the second half of 2020.

Societe Generale Equipment Finance (SGEF) and Nordea Finance have entered into a commercial partnership agreement which would encompass the provision of mutual services in vendor solutions and equipment finance.

The partnership will leverage on the strengths of the two institutions to offer a wide range of products and services to international vendors that are clients of equipment finance solutions.

ALD Automotive, Societe Generale’s vehicle leasing and fleet management arm, and Nordea Finance already operate in a partnership to address mobility needs of corporates, SMEs and private individuals in Denmark, Finland, Norway and Sweden.

Philippe Heim, deputy chief executive of Societe Generale group in charge of international retail banking activities, financial services and insurance, said: “With this agreement, Societe Generale makes once again a major step in the execution of it’s refocusing plan and demonstrates its ability to enter into long term partnerships.”

“Societe Generale Equipment Finance is a leading player in equipment finance and Societe Generale will continue to leverage on SGEF’s ability to accompany its international vendors and clients and support the real economy,” he added.