After 20 years of presence in Romania, OTP Group signed a binding agreement with local market leader Banca Transilvania to sell its stake in OTP Bank Romania. The transaction is estimated to close in the coming months, subject to regulatory approvals from the relevant banking and antitrust authorities. The combined purchase price is EUR 347.5 million.

As a result of this agreement, OTP Group is selling the subsidiaries of OTP Bank Romania as well, which means a complete exit from the Romanian market.

Horia Ciorcilă, Chairman of Banca Transilvania Board of Directors, commented: “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.”

In his turn, Sándor Csányi, Chairman and CEO of OTP Bank, said: “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.”

Once the regulatory approvals are obtained, BT will commence the legal and operational merger with OTP Bank Romania. OTP Group’s brand name will temporarily remain in place “to ensure a smooth transition for customers and colleagues until the merger is completed,” according to the two companies. Also, the merger will not affect OTP Banks’ clients in Romania.

OTP Bank operates within the Romanian market as a universal bank, controlling 2.64% of the local market in terms of total net assets. It currently serves close to 420,000 retail customers and more than 22,000 corporate/SME customers, thanks to its 1,800 employees and a network of 96 branches. 

Banca Transilvania is the largest bank in Romania and South-Eastern Europe. It has a 20% market share in net loans, more than 4 million customers, around 10,000 employees, online banking solutions, and a countrywide branch network.

irina.marica@romania-insider.com

(Photo source: the company)