First Bank, owned by the American investment fund JC Flowers, has concluded the legal and operational merger with Bank Leumi Romania, thus completing the transaction initiated in the summer of 2019.

"This merger has turned into a complex process due to the pandemic," said Henk Paardekooper, chairman of the executive committee and a member of the board of First Bank.

The teams of both banks had to keep their distance and work from home during the past couple of months, but Paardekooper says that they were fully supported by the boards of directors.

It is the first successful merger of teams that have mainly operated remotely or from home. The acquisition is a natural step in consolidating the presence of First Bank on the local market and expanding its portfolio of valuable customers, the bank's chairman said.

At the same time, the bank launched the new mobile and internet banking application, complementing its network of branches.

Romanian bank First Bank, formerly Piraeus Bank, signed last year an agreement to acquire the Romanian subsidiary of Israeli Leumi Bank.

Although Leumi is the largest bank in Israel, Leumi Bank Romania was one of the smaller local banks, with assets of only EUR 250 mln and a market share of 0.32% at the end of 2017.

JC Flowers entered the Romanian market in 2018 through the acquisition of Piraeus Bank, later renamed First Bank.

(Photo courtesy of the company)

editor@romania-insider.com