DealBook: Credit Agricole to Sell Private Equity Unit

The clearance sale of European bank assets continues.

On Friday, Crédit Agricole agreed to sell its private equity unit to Coller Capital, a private equity firm.

The deal comes shortly after the European Banking Authority told the Continent’s financial firms that they would have to find $153 billion in additional capital to comply with regulatory requirements, a move that has caused many banks to consider unloading noncore assets. Crédit Agricole, which didn’t disclose the sale price, said Friday that the sale of its private equity unit would reduce its risk-weighted assets by 900 million euros, or about $1.2 billion.

Crédit Agricole’s decision to offload its private equity business, known as CAPE, “forms part of a plan to optimize capital allocation and refocus the bank’s private equity activities on local business,” the bank said in a statement.

The sovereign debt crisis in Europe, and resulting volatility around the globe, has taken a large toll on Crédit Agricole. The bank said Wednesday that it would eliminate 2,350 jobs, and that it would likely report a loss on the year as a result of a $3.2 billion write-down connected to losses in its investment banking division. Its rival French bank, Société Générale, is also said to be planning job cuts.

The deal is expected to be approved in the first quarter of 2012.

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