OTP Bank Romania, which is part of Hungarian OTP Group, has finalised the acquisition of Millennium Bank Romania. OTP paid EUR 39 million for 100% of Millennium Bank’s shares to Banco Comercial Português, the bank announced on Thursday, January 8. The transaction was first announced end of July 2014.

As a result of the acquisition, OTP Bank’s market share in Romania will rise to approximately 2% and the newly merged bank is expected to move up to 13th place amongst the top of banks present in Romania. OTP was 17th at the end of May 2014, with 1.3% market share, while Millennium Bank Romania was 21st with 0.7%.

“The acquisition of Millennium Bank Romania is a key moment in the history of OTP Bank Romania, which brings us closer to our middle term strategic goal to get into the top 10 banks in Romania. I firmly believe that the acquisition of Millennium Bank Romania represents a further step to our evolution on the Romanian market that strengthens our market presence and reinforces our position as a solid and stable universal financial service provider,” said László Diósi, CEO of OTP Bank Romania.

Millennium Bank Romania has nearly 80,000 clients. Its network consists of 56 units and 58 ATMs, with a strong concentration in Bucharest. Millennium Bank’s customers will be transferred to OTP Bank Romania, in a natural integration process which is expected to be completed in one year.

As a result of the acquisition, OTP Bank Romania will reach almost 400,000 clients, while its network will consist of 140 branches and 180 ATMs, according to OTP’s representatives.

“Our strategic aim is to extend our market share in the countries where we are present. Romania has always been an important market for us. Since entering the local market, over ten years ago, we have grown organically. This acquisition fits well into our growth strategy and further consolidates our position,” declared László Wolf, Deputy CEO of OTP Bank.

Romania’s banking system is currently undergoing a consolidation process, as well as a portfolio clean-up process. Some banks have been selling non-performing loan portfolios in the last two years, while others have acquired smaller banks or loan portfolios. The largest acquisition was Banca Transilvania’s takeover of Volksbank Romania, which was announced in December 2014.

Andrei Chirileasa, andrei@romania-insider.com