Two loss-making French mutual banks have announced their long-anticipated merger in a deal to create the country's No. 2 retail bank. Caisse d'Epargne and Banque Populaire said the combined bank will have 34 million customers and a network of 7,700 branches, according to AP. The companies said in a joint statement Thursday that France's government will inject up to Euro 5 billion (US$6.4 billion) through nonvoting preferred shares and other instruments, which could give it up to a 20 percent stake in the newly formed bank.
