IDB links arms with Credit Agricole to boost global expansion
French banking giant will help locate investment opportunities, and provide financing too
IDB (TASE: IDBH) has entered a collaboration with Europe's second-largest bank, Credit Agricole. The agreement was signed via Credit Agricole's international corporate and investment banking unit, Calyon.
The deal heralds the French banking giant's entry into the local market. It also signals that IDB, owned by Nochi Dankner, is expanding ties with international financial institutions prior to carrying out mergers and acquisitions abroad.
Calyon will identify merger and acquisition opportunities abroad for IDB and will lend it money, as needed.
Having just bought Koor Industries, IDB wants to use it as a vehicle for making major investments abroad. It has in mind two deals worth $1 billion to $2 billion each through Koor, which will become the bank's international operations arm once its acquisition is closed.
Calyon heads recently visited the country, and met with Finance Ministry Director General Joseph Bachar along with other local leaders. The bank's executives told Bachar in the meeting that they are interested in undertaking wide-scale operations in Israel.
The group has ties with several institutions here, but the IDB deal appears to be its most significant step in Israel. Bachar told the bank's officials that he ascribes great importance to the entry of foreign investors into the local market.
The Banker magazine rates CA as one of the world's five leading banks and Europe's second largest. The group employs 134,000 people in 60 countries and has a nearly $50 billion market value.