PARIS, (Reuters) – France’s most powerful telecom group Orange has announced that it would purchase insurer Groupama’s 21.7% share in Orange Bank. This will allow the bank to acquire its online banking division and provide a capital increase of 230m euros ($266.4million).

Orange stated in a statement that Orange will continue to invest in the bank’s development “to strengthen its development”,

Reuters reported that Orange sought a new investor for its bank unit in March.

Stephane Richard, Orange CEO, stated in April that it was not seeking a new investor. He added that Groupama would still be involved in the venture “on its own”, if Groupama decided to leave and if they did not find another partner.

French media reported that BNP Paribas and Societe Generale were both interested in purchasing a stake, but Orange ended the talks because they deemed the demands of the banks too high.

Orange now controls 100% of the bank’s banking business. Groupama was not informed of the amount it paid for their stake.

Orange Bank which launched in France four years back and has over 1.6million customers in Spain and France, said it will “significantly” lower its losses for 2021. Partially due to an increased net banking income of 57%, it was up 57% in half 2021 relative to the same period in 2020.

($1 = 0.8635 euros)