BNP Paribas in exclusive negotiations with Stellantis in the context of a reshuffling of their partnerships relating to “Captive” Financing.
17.12.2021 | Financial Information, Press release
The proposed project should enable BNP Paribas Personal Finance to:
- Consolidate and strengthen its existing partnership with Stellantis launched in November 2017 (after the acquisition of OVF);
- Increase by ~€6bn the outstanding at closing (currently €11 billion) with a potential growth;
- Increase and diversify its exposure to all of the Stellantis brands (OPEL, Vauxhall, Fiat, Chrysler, Alfa Romeo, Peugeot, DS, Citroën, Jeep, Abarth, Lancia, Dodge, Ram and Maserati)
The plan to enter into these agreements and the implementation of these partnerships is subject to the usual approvals and also prior information and consultation of the relevant employee representative bodies. The closing of the transaction would then be expected to occur in H1 2023.
The impact on the Group CET 1 is expected to be non-material (around 5 bps).
Commenting on this announcement, Thierry Laborde, Chief Operating Officer of BNP Paribas declared: “This project would strengthen our long-term partnership with Stellantis and further increase BNP Paribas Personal Finance’s footprint on the automotive financing business. We will bring all our capabilities to bear in support of Stellantis’ clients in these strategic markets.”
Charlotte Dennery, CEO of BNP Paribas Personal Finance, added: “We are delighted to be able to continue and expand our existing partnership with Stellantis. BNP Paribas Personal Finance would thus become the exclusive partner of the captive of Stellantis for the financing of all its 14 brands in the United Kingdom, Germany and Austria, countries at the heart of our development strategy. Beyond reinforcing these key geographies, this transaction would increase our position in the rapidly evolving mobility market, one of the major axes of our strategic plan.”
Carlos Tavares, CEO of Stellantis, concluded: “After the successful development of our JV with BNP Paribas on Opel Bank in the past years, Stellantis is eager to extend our cooperation with BNP Paribas in order to support our sales and offer the best financing solutions to our customers and dealers”.
About BNP Paribas
BNP Paribas is the European Union’s leading bank and key player in international banking. It operates in 68 countries and has more than 193,000 employees, including nearly 148,000 in Europe. The Group has key positions in its three main fields of activity: Retail Banking for the Group’s retail-banking networks and several specialised businesses including BNP Paribas Personal Finance and Arval ; Investment & Protection Services for savings, investment and protection solutions ; and Corporate & Institutional Banking, focused on corporate and institutional clients. Based on its strong diversified and integrated model, the Group helps all its clients (individuals, community associations, entrepreneurs, SMEs, corporates and institutional clients) to realise their projects through solutions spanning financing, investment, savings and protection insurance. In Europe, BNP Paribas has four domestic markets: Belgium, France, Italy and Luxembourg. The Group is rolling out its integrated retail-banking model across several Mediterranean countries, Turkey, Eastern Europe as well as via a large network in the western part of the United States. As a key player in international banking, the Group has leading platforms and business lines in Europe, a strong presence in the Americas as well as a solid and fast-growing business in Asia-Pacific.
BNP Paribas has implemented a Corporate Social Responsibility approach in all its activities, enabling it to contribute to the construction of a sustainable future, while ensuring the Group's performance and stability.
Stellantis is a leading global mobility player guided by a clear mission: to provide freedom of movement for all through distinctive, appealing, affordable and sustainable mobility solutions. Our Company’s strength lies in the breadth of our iconic brand portfolio, the diversity and passion of our 300,000 people, and our deep roots in the communities in which we operate.
With industrial operations in nearly 30 countries and a commercial presence in more than 130 markets, Stellantis has the ability to consistently exceed the evolving needs and expectations of customers, while creating superior value for all stakeholders.