Société Générale/Saham: What would change?
The Saham group is said to be negotiating the purchase of Société Générale France’s shares in its Moroccan subsidiary, Société Générale Maroc. The news, which hit the media at the end of last week, caused quite a stir. The Saham Group, owned by the well-known Moroccan businessman and former Minister of Industry and Trade, Moulay Hafid Elalamy, is said to be in talks to acquire all the French shares in Société Générale Morocco. However, nothing official has yet been announced. No press release from the group has been issued to confirm or deny the information. « The deal may or may not go through, especially as this is not the first time the businessman has been rumored to be interested in the banking sector «, says a keen observer of the banking world. For several years now, rumors have been circulating that Moulay Hafid Elalamy was going to buy part of Othmane Benjelloun’s group, Bank Of Africa. In 2018, some headlines announced that Moulay Hafid Elalamy would take a 25% stake in the Moroccan bank. These recurring rumors were formally denied in 2022, with Moulay Hafid Elalamy describing them as «fake news». Rumors also circulated in 2016 that the French banking group Crédit Agricole would sell its stake in Crédit du Maroc to the Saham group. However, according to sources close to the market, Saham declined Crédit Agricole’s offer, as it was not interested.
A much more strategic move for the French group
It is Société Générale that is now attracting the interest of the great financial mogul. The deal would involve 57.66% of Société Générale Maroc, which represents the French company’s stake in its Moroccan subsidiary. Discussions would also cover the shares held by the same French company in its various subsidiaries, namely Eqdom (listed in the stock exchange), Sogelease, and La Marocaine Vie. Should the deal go through, it would mean Société Générale France’s total withdrawal from the Moroccan market, a far more strategic move for the French group than the sale of shares in one or even several subsidiaries. Moulay Hafid Elalamy’s plans for the banking sector are not limited to Morocco. According to reports in the African media, the Saham group is targeting Société Générale’s shares in Côte d’Ivoire, Cameroon, and Senegal. This is in addition to the Moroccan subsidiary. « Moulay Hafid Elalamy would like to acquire a bank with an African dimension and thus compete with other Moroccan banks that are expanding in Africa, Bank Of Africa in particular «, continues our source. The withdrawal of Société Générale (France) from African countries, following the example of BNP Paribas, would come at just the right time and represent a «dream opportunity» for the Saham group, which has never hidden its ambitions in the finance sector. Contacted by L’Economiste, Société Générale France « does not comment on market rumors «. The Moroccan bank claims that «something « is going on, but has no clear idea of what this « something» might be. Here again, no information other than a feeling or at least a «feeling» about the prevailing atmosphere. « Several departures of bank executives have been negotiated», confides a banker, «which suggests that changes may be in the offing «. Nothing tangible, however, and nothing certain. A severance plan could be a human resources «adjustment. We are reminded of the strong rumors that involved BNP Paribas. These took for granted the French bank’s withdrawal from Morocco, prompting top management to make a media appearance (cf.www.l’économiste. com) to formally deny the information and confirm the bank’s ambitions to expand in the Moroccan market. Let us then just wait and see.
Reconfiguring the banking landscape
The deal between the Saham Group and Société Générale France, if confirmed, heralds a new era for the national banking landscape. Indeed, such an operation heralds a reconfiguration of the banking system. We «We’re heading towards a new Moroccanization and concentration of Moroccan banks, which will result in a configuration of three or four powerful banks.
a market insider explains. « It is an open secret French banks have been hoping to withdraw from the Moroccan banking landscape for years. Yesterday it was Crédit Agricole, today it is Société Générale «, he continues. «The banking subsidiaries of French groups in Morocco are unable to establish themselves on the domestic market, in the face of increasingly stiff competition from banks with majority Moroccan capital and a strong presence in Africa «, explains our source. «The contribution of sub-Saharan subsidiaries is boosting the growth of the leading trio, which is gaining in strength in the face of a slight slowdown on the part of French bank subsidiaries «, confides our source. All the more so as the latter do not have a free hand, being part of a group logic. «They are more or less shackled by their parent companies, which are much more cautious, particularly in terms of granting credit, which makes them uncompetitive in the face of the aggressiveness of their Moroccan counterparts», explains a local analyst.
Withdrawal from African subsidiaries
By 2023, Société Générale (France) has decided to withdraw from six African countries (Congo-Brazzaville, Equatorial Guinea, Mauritania, Chad, Burkina Faso, and Mozambique), and a strategic review is underway in Tunisia. There are, however, a number of contradictions. While the bank has announced its withdrawal from these African countries, its management confirms that it wishes to consolidate its presence in others, as is the case for Senegal and Côte d’Ivoire, which have been reported as being in the process of being sold off by certain continental media outlets. Société Générale also claims to be the leading international bank in West Africa, with a strong presence in Côte d’Ivoire, Senegal, and Cameroon.
Fédoua Tounassi
