BNP Paribas Personal Finance expands its presence in South Africa with the acquisition of JD Group’s consumer finance activities
RCS, the 100% owned South African subsidiary of BNP Paribas Personal Finance has concluded agreements with JD Group and its parent company Steinhoff in order to acquire its consumer finance activities in Southern Africa and to enter into a long-term commercial relationship with JD Group.
BNP Paribas Personal Finance, the European leader in Consumer Finance, has had a long standing partnership with Steinhoff in Europe. It wishes to build upon this partnership to enter into a strategic alliance with Steinhoff in South Africa. Through this alliance, JD Group, an important South African retailer, 86% owned by Steinhoff, will sell to RCS its consumer finance activities. Concurrently, Steinhoff will acquire a 30% shareholding in RCS, BNP Paribas Personal Finance’s fully-owned subsidiary in Southern Africa.
The transaction – aiming to become effective on 1 April 2015 – is two-fold:
1. The acquisition by RCS of JD’s current loan book. The assets will be guaranteed by Steinhoff;
2. The signature of a 10-year commercial agreement between JD Group and RCS.
Upon completion of the transaction, RCS will double in size and will add to its portfolio of credit card activities a consumer finance business based on fixed-term contracts.
Thierry Laborde, Chief Executive Officer, BNP Paribas Personal Finance, indicates: “This transaction is the second stage of our development in Southern Africa allowing us to expand our market share in this promising market through the acquisition from retailers of their consumer finance captives. We are delighted to take this opportunity to reinforce our alliance with Steinhoff. Our track record in quality of service, scoring and risk management will be instrumental in delivering the consumer finance service levels JD’s outlets and their clients expect.”
BNP Paribas Personal Finance – JD Group – December 18, 2015