Italy's Banca IFIS SpA entered into a nonbinding term sheet with local peer Credito Fondiario SpA regarding a potential partnership in the debt servicing and purchasing sector.
The discussions entail the possible creation of a new entity operating in the nonperforming loans segment that will cover every area of credit management businesses and all asset classes, including secured, unsecured, leasing and consumer credit. The entity will also compete in terms of size, quality of services and efficiency with the leading businesses in the industry.
Under the terms of the partnership, Credito Fondiario will consolidate the entity's combined activities.
Both Banca IFIS and Credito Fondiario said they have undertaken an exclusivity commitment of 60 days, during which they aim to continue with the ongoing analysis and discussions, and complete the binding agreements.