Worldline (WLN.PA) is getting a show of support from a fellow French player. Credit Agricole (CAGR.PA) revealed on Monday it has bought a 7% stake in the payment player and partner run by businessman Gilles Grapinet. The purchase lifted Worldline’s shares some 3%. That’s likely to offer little relief to investors as the company’s stock is down two-thirds in the past 12 months, making the 3.8 billion euro payment firm vulnerable to an acquisition by a rival.
Buying in while Worldline’s shares are cheap may be meant to protect a payment agreement clinched in July 2023 or just a financial bet by Credit Agricole CEO Philippe Brassac. But there could be other consequences. If counted with the shares already owned by state-controlled French entities Bpifrance and Caisse des Depots et Consignations, the investment gives the French camp control of 14% of Worldline collectively. That could be a warning sign for 9.6 billion euro Italian competitor Nexi (NEXII.MI), which hopes to become a larger European player through M&A. For anyone tempted to swoop on Worldline, its growing French voice will be hard to ignore. (By Lisa Jucca)
The author is a Reuters Breakingviews columnist. The opinions expressed are their own.
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