News that BNP Paribas is acquiring the Belgium and Luxembourg businesses of European finance and insurance giant, Fortis, does not affect Fortis UK, which remains in the hands of its shareholders.
Last week, Fortis Group received a significant injection of cash from the governments of Belgium, the Netherlands and Luxembourg, which over the weekend entered discussions with BNP, France’s largest bank. An agreement has been reached whereby BNP will take 75% of Fortis’ Belgian operations and a 66% stake in its Luxembourg business. It is also buying some of the group’s insurance operations.
However, Fortis UK operates as a separate legal entity from Fortis Group and business is carrying on as usual.
Following the transaction, Fortis Group consists of Fortis Insurance Belgium, Fortis Insurance International and the remaining banking activities. The UK arm is part of the remaining group.