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Cetelem (BNP Paribas Group) acquires Banco BGN and expands in Brazil

Cetelem, a BNP Paribas company, and leader in the consumer credit market in continental Europe, announces that it has acquired 100% ownership of Banco BGN.

Banco BGN, a company in the Queiroz Galvao industrial group, is a leader in consigned credit (repayments debited directly from salaries) in Brazil and has a portfolio of 1.5 billion reals (M€ 585), over 600,000 active customers and employs 850 people.

The transaction will involve an exchange of shares and remains subject to approval by the relevant authorities.

For BNP Paribas, this acquisition is a major investment in Brazil, a country that has strong growth potential, with much at stake, and where the Group's has been present for over 50 years and operates with combined businesses.

Brazil is already the fourth country in terms of revenues for Cetelem after France, Italy and Spain. This acquisition significantly strengthens Cetelem's operation.

Present in Brazil since 1999 Cetelem pioneered co-branded cards, establishing partnerships with more than 70 distributors including Fnac, Armarinhos Fernando, Fast Shop, Colombo, Telhanorte, Submarino, Kalunga e Casa & Vídeo. Cetelem now has over 1.8 million customers in all segments of the market.

With its network of 107 branches and over 1,000 banking correspondents throughout the country, the acquisition of BGN will complement the existing partner relationships that Cetelem has established in the consigned credit business.

“This acquisition positions Cetelem as a major player in the consigned credit sector, which continues to grow in this country and is expected to increase at a steady pace. It confirms our ambition, especially in Brazil, to become a multi-specialist, with a presence in all areas of the consumer credit market”, says François Villeroy de Galhau, Chairman & CEO of Cetelem.

“With the human resources that Banco BGN contributes, allied with the bank's expertise in the consigned and SMI's segment, this operation provides us with the opportunity to increase our business scope in the country” confirms Marc Campi, CEO of Cetelem Brazil.

“The Queiroz Galvao group is pleased to pass control of Banco BGN to a BNP Paribas company, which has strong business development ambitions in Brazil and whose activities complement the bank's own activities. This operation will enable the Queiroz Galvao group to focus on its core businesses of oil and construction”, states Carlos Queiroz Galvao, Chairman and founder of Banco BGN.

About BGN
Banco BGN was founded in 1994 and commenced operations in May 1995 with the mission of establishing the Queiroz Galvao group as a provider of financial services, focussing its activity at first in the north-eastern region of Brazil. It is now a specialist in consigned credit, providing low cost credit solutions to government employees, retired people and pensioners. The bank currently has a portfolio of approximately 1.5 billion reals and over 600,000 active customers.

About Cetelem
A BNP Paribas company, Cetelem pioneered consumer credit in 1953 and Internet credit in 1997. The company ranks as number 1 in the market in France and continental Europe. With over 53 billion outstanding loans and 21,000 employees, Cetelem has a presence in 27 countries and 4 continents.
Cetelem is also regarded as a preferred business partner for banks and insurance companies who benefit from its expertise in the consumer credit sector.
Cetelem, sponsor of responsible lending, also commits itself to propose the most adapted offers to its customers.

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About BNP Paribas in Brazil
BNP Paribas has been present in Brazil for over 50 years, and today has almost 2,000 employees. As a financing and investment bank, BNP Paribas is the leader in export credit financing for Brazilian importers and number 4 for financing advice on projects. The group is also active in Private Banking, where it occupies 7th place and also via subsidiaries in the consumer credit (Cetelem), insurance (Cardif) and fleet management (Arval) business sectors.