Banca Transilvania buys OTP Bank Romania
Banca Transilvania today signed a binding agreement with OTP Group to buy its stake in OTP Bank Romania. As a result of this agreement, OTP Group is selling the subsidiaries of OTP Bank Romania as well which results fully exiting the Romanian market. The closing of the transaction is expected to take place in the coming months, subject to regulatory approvals from the relevant banking and antitrust authorities. The combined purchase price is EUR 347.5 million.
After obtaining the regulatory approvals, BT will commence the legal and operational merger with OTP Bank Romania. The OTP Group’s brand name will temporarily remain in place to ensure a smooth transition for customers and colleagues until the merger is completed. In the meantime, OTP Bank Romania and its subsidiaries will continue honouring their commitments to their clients as well as providing professional services of the highest quality level. There are no actions required from OTP Bank Romania’s clients as a result of the transaction, as they will continue being served under same terms and conditions as per the existing one. The bank will also maintain its commitments towards the Bethlen Gabor Foundation and will continue to serve all the customers under the same terms and conditions as existing, including the multi/bilingual services, where it is necessary.
Horia Ciorcilă, Chairman of Banca Transilvania Board of Directors, declared: For the BT Group, the acquisition of OTP Group’s business in Romania is an opportunity to strengthen our leading position and contribute to the consolidation of the Romanian banking market. We will continue pursuing our ambitious plans by organic growth, but also maintaining an active role in further M&A possibilities in financial market segments of interest. We thank the OTP Group for the business they have built in Romania and for the pragmatic discussions concluded with a positive result. We are looking forward to welcome OTP’s clients and employees to BT.
Sándor Csányi, Chairman and CEO of OTP Bank, commented: Our local bank has come a long way in the 20 years we have been in Romania, and we have achieved substantial organic growth in recent years, but it has become clear that we cannot achieve our strategic growth target without acquisitions. And there is little prospect of potential acquisitions in the foreseeable future. I am confident that our customers will continue to receive the high quality of service they have come to expect and will continue to have a choice of innovative financial products. I would like to thank our Romanian colleagues and the management of the respective companies for their dedication and hard work, which has been the basis for the growth and high quality of service we have achieved so far.
Banca Transilvania is the largest bank in Romania and South-Eastern Europe. As a universal bank, it covers all customer segments and business lines in the financial sector. It has 20% market share in terms of net loans, more than 4 million customers, around 10,000 employees, leading-edge online banking solutions, and a strong branch network countrywide.