Orange has announced its decision to seek a strategic partner to support the growth of its banking subsidiary. After a thorough evaluation process involving the Group's management and an Ad Hoc Committee, Orange's Board of Directors has agreed to enter exclusive negotiations with BNP Paribas.
Focus on Referral Partnership and Mobile Device Financing
According to the statement, the primary focus of these discussions is to establish a referral partnership for Orange Bank's customer portfolio in France and explore financing solutions for mobile devices. Additionally, the two entities will explore the possibility of BNP Paribas acquiring Orange Bank's business in Spain.
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This partnership with BNP Paribas marks an important step in Orange's strategy to gradually withdraw from the retail banking market in France and Spain. Notably, the decision-making process excluded the Chairman of Orange's Board of Directors, who opted out due to their affiliation with BNP Paribas.
The agreement exclusively pertains to Orange's operations in France and Spain and is expected to have no impact on the company's financial trajectory for the 2023-2025 period, as previously communicated during the Capital Market Day on February 16, 2023.
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Gradual Withdrawal from Retail Banking Market
Customers of Orange Bank can rest assured that there will be no disruption to services, existing loans, or day-to-day operations. All banking products and services will continue to be available through orangebank.fr and orangebank.es. Orange Bank maintains a strong financial position and will fulfil all regulatory obligations until its eventual withdrawal from the market.
BNP Paribas reaffirmed the longstanding partnership between BNP Paribas and Orange, expressing satisfaction in providing a seamless continuity solution for Orange Bank customers following the strategic decision to exit retail banking. Orange Bank serves over two million customers.
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The negotiation process between Orange and BNP Paribas will pave the way for a smooth transition, ensuring the best possible outcomes for all stakeholders.
