Casino Group and Crédit Mutuel Alliance Fédérale have agreed to sell French web and mobile payment solutions provider FLOA to BNP Paribas.
The French banking group will pay around $305m (€258m) for all outstanding shares of FLOA.
Casino Group and Banque Fédérative du Crédit Mutuel will receive €129m each as part of the transaction.
The deal awaits the nod of France’s competition authority and the European Central Bank (ECB). It is expected to close in the next quarters.
FLOA offers payment facilities, instant loans and bank cards to its three million customers. It operates two retail banking brands; FLOA Bank for its B2C customers and FLOA Pay for its B2B partners.
As part of the deal, BNP Paribas will act as an exclusive provider and distributor of consumer credit solutions for Casino Group customers.
The company will enter into a commercial partnership with the Casino Supermarchés, Géant and Cdiscount banners for the same.
FLOA will continue to support Cdiscount to operate its bank card payments business, the companies said.
Furthermore, Casino Group and BNP Paribas will collaborate to develop the FLOA PAY split payment solution.
BNP Paribas Group COO Thierry Laborde said: “With BNP Paribas, FLOA will launch a second phase of its development in France and Europe, especially with vendors and e-tailers. The planned transaction is perfectly aligned with our payments development strategy in Europe.
“At the same time, the partnership with Casino will enhance the offering of payment solutions available to customers and strengthen our leading position as a consumer credit provider in France and Europe.”
Casino Group Chairman and CEO Jean-Charles Naouri said: “FLOA is a joint success for Casino Group and Crédit Mutuel Alliance Fédérale. Banking innovations, in particular split payment solutions, have become fundamental features of the French banking sector.
“It is therefore entirely natural for Casino Group to be planning this strategic partnership now with BNP Paribas, which will enable Casino Supermarchés, Géant and Cdiscount customers to continue enjoying the advantages of innovative financing and payment solutions for their purchases, thanks to the strength of BNP Paribas.”