Credit Agricole Considers Acquiring Stake in Worldline

French payment processing company Worldline experienced a surge of nearly 12% in its shares Friday (Dec. 1) following a report that French lender Credit Agricole is considering acquiring a stake in the company.

The move by Credit Agricole is seen as an attempt to stabilize its struggling payments partner, with the potential for other French financial institutions to also be involved in Worldline’s future, Reuters reported Friday, citing unnamed sources.

Reached by PYMNTS, both Credit Agricole and Worldline declined to comment on the report.

Worldline faced challenges in recent months, surprising investors in late October when it announced a cut to its full-year financial targets due to the economic slowdown, particularly in Germany, according to the report.

The company also took measures to reduce risks associated with cybercrime by severing ties with some of its merchants, the report said.

Despite the setbacks, Worldline had previously signed a binding agreement with Credit Agricole to establish a joint venture that would provide payment services to businesses and their customers, per the report. The necessary approvals for this venture are expected to be received by the end of this year, with a planned launch in early 2024.

The news of Credit Agricole’s potential stake acquisition has had a positive impact on Worldline’s stock, which initially surged and then stabilized at a 5% increase, according to the report. However, Worldline’s shares have fallen over 58% this year.

It was reported Nov. 24 that Worldline could be a takeover target, with one of Europe’s largest private equity outfits considering a buyout of the firm.

Worldline is one of several merchant acquirers that have reportedly been in the crosshairs of private equity interest during this time of reduced stock prices and valuations.

In other recent headlines in the space, FIS sold its majority stake in Worldpay to private equity group GTCR, retaining a 45% stake; CVC Capital Partners was reported to be considering purchasing European payments company Nexi; and British bank Barclays was reported to be mulling the sale of a stake in its unit focused on processing merchant payments.