Crédit Agricole, France’s second-largest bank, has signed an agreement to acquire German commercial lender IKB Deutsche Industriebank as part of its medium-term expansion into the country.

IKB is currently owned by Lone Star Funds, a Texas-based private equity firm. Crédit Agricole said that the deal will provide immediate scale in the German mid-corporate banking market, noting IKB’s long-standing ties to the German Mittelstand and “very strong” team.

The deal is expected to close by the second half of 2027, subject to customary regulatory approvals. The purchase price was not disclosed.

The acquisition forms part of Crédit Agricole’s European growth strategy, in which Germany is a priority market, it said.

IKB has operated in Germany for over 100 years and provides loans, capital market solutions and advisory services to mid-sized upper German corporates, a group of companies often termed Mittelstand in German-speaking Europe. It reported a net profit of €61 million for the financial year 2025, with a total loan book of €8.2 billion, Crédit Agricole said.

Olivier Gavalda, Crédit Agricole’s chief executive said: “Germany is at the heart of our European ambitions and a key pillar of our ACT 2028 plan. With IKB, we welcome into the Group a franchise of exceptional quality, built on a century of proximity to clients, deep sector expertise and an unwavering commitment to the Mittelstand.

“Together, we will have the scale, the network and the financial capacity to support German companies in their investment, international expansion and energy transition projects.”

The news, announced Monday, comes shortly after the French lender launched a new, digital-first retail bank in Germany.

It said at the time that the bank will “combine a fully digital customer journey enhanced with AI with accessible human support in established local presence, and the financial strength and capabilities of Crédit Agricole's European leading producers”.

Last month, Reuters reported that Crédit Agricole was considering a joint takeover of Italian lender Banco BPM, alongside UniCredit.

---