Japanese Bank invests in Credit Agricole
Japan’s Norinchukin Bank will invest EUR 206M in France’s biggest bank to save it from financial trouble.3 October 2008
TOKYO -- Japan's Norinchukin Bank will invest in France's biggest retail bank Credit Agricole SA, which was affected by the global financial crisis, a company official said.
Japan's Jiji Press and Kyodo News said that the Japanese bank would invest JPY 30 billion (EUR 206 million) to take a 0.5 percent stake in Credit Agricole and would consider joint investments in Asia and Europe.
A Credit Agricole official in Tokyo confirmed to AFP that the two companies had a deal but would not give details. The two companies were soon expected to hold a news conference.
Norinchukin Bank, which was founded in 1923 and privatised in 1959, is the bank for agricultural, forestry and fishermen's cooperatives in Japan.
Credit Agricole was hurt by the global crisis caused by the collapse of subprime housing loans in the United States. It announced 500 job cuts in September.
Japanese banks, which are more cautious than US and European banks, expanded their business abroad during the ongoing global crisis.
Mitsubishi UFJ Financial Group is buying 21 percent of troubled Wall Street bank Morgan Stanley while Japan's biggest securities firm Nomura Holdings is taking over the Asian, European and Middle Eastern operations of collapsed Lehman Brothers.
[AFP / Expatica]