France's Credit Agricole buys 7% stake in payments firm Worldline

French bank Credit Agricole (CAGR.PA), opens new tab said on Monday it had bought 7% of Worldline (WLN.PA), opens new tab, in a bid to bolster the payments group after a slump in its share price last year. Worldline's shares jumped more than 5% after the announcement, which follows reports in December that Credit Agricole was exploring building a stake in the company.

The Paris-based payments firm has lined up bankers to advise on a defence strategy to reassure shareholders and avoid a hostile takeover, Reuters reported last week.

The advisers were sounding out potential investors such as French financial institutions about taking a minority stake in the group, sources said. The value of Worldline's shares more than halved in October when it cut its financial targets amid scrutiny by German regulators over money-laundering controls.

Worldline said its business had been hit by an economic slowdown in Europe. Credit Agricole said in a statement on Monday that its purchase of 7% of Worldline was to strengthen a partnership that the two firms agreed last year, showing its "intention to support Worldline’s development and implementation of its strategy as a key European payment services provider".

The pair had agreed a joint venture to tap the 700 billion euros ($767.6 billion) of merchant sales in France as customers increasingly move from cash to card payments. Credit Agricole on Monday said operations would start this year. Worldline said in a separate statement that it welcomed the investment, which it called 'a testament to the strategic evolution of the European payment market'.  

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