Societe Generale shares benefit from a boost from Emmanuel Macron

Societe Generale shares benefit from a boost from Emmanuel Macron
Societe Generale shares benefit from a boost from Emmanuel Macron

Emmanuel Macron is fueling the debate on consolidation between European banks. In an interview with Bloomberg on May 13, the President of the Republic called for such a movement which could involve several French banks.

“We need consolidation and we also need a real domestic market [européen] (…) Energy, finance and telecoms are the key sectors where a single market does not exist”he estimated in response to a question comparing the relative small size of the leading European bank, BNP Paribas, compared to its American competitors JPMorgan or Bank of America.

When Bloomberg asked him if he would be happy if Santander bought Société Générale, he did not deny: “it’s part of the market, acting as European means that European consolidation is necessary”. “The banking union is already on the way, now we need a capital markets union (…) and I think we can reach a Franco-German agreement on the subject”added Emmanuel Macron.

The president also attacked the Solvency and Basel regulations which, according to him, should not be implemented in Europe if they are not in the United States.

Societe Generale shares benefit from this

In reaction to these comments, Société Générale shares jumped by almost 4% on Tuesday afternoon, to 27.3 euros, bringing its increase to 12% in six sessions. BNP Paribas and Crédit Agricole were close to balance in a slightly rising Parisian market.

The Banque de la Défense, valued at 21.9 billion euros, is a potential prey among French banks while BNP Paribas could play a consolidator role as the leading bank in the euro zone.

In addition to these statements by Emmanuel Macron, speculation about banking consolidation in Europe has been revived in recent days by the launch of a hostile operation by the Spaniard BBVA on its compatriot Sadabell.


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Emmanuel Macron cultivates his relations with American banks

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