PARIS (Reuters) – The French government will announce on Thursday the merger of CNP Assurances <CNPP.PA> and La Poste, which will fall under state-owned investment fund Caisse des Depots, a government source told Reuters confirming a report in Les Echos.
Under the deal, La Caisse des Depots et Consignations, or CDC, would hand over its 41 percent stake in CNP Assurances in exchange for a stake in La Poste, which already owns a bank.
La Poste will then merge its bank, La Banque Postale, with CNP Assurances to expand the range of services it provides.
The French government, which owns both CDC and La Poste, wants to build up a state-owned company that would provide both banking and insurance services in the country’s rural areas which are often neglected by private rivals.
A spokeswoman for CNP Assurances declined to comment. CDC and La Poste did not immediately respond for comment.
(Reporting by Cyril Altmeyer and Myriam Rivet; writing by John Irish. Editing by Jane Merriman)