Romanian lender First Bank, controlled by U.S. investment fund JC Flowers, announced it signed an agreement with Israeli Bank Leumi to acquire all of its holdings in Bank Leumi Romania.

The acquisition is conditioned on receiving the approval from Romania's National Bank (BNR) and the Competition Council, according to a press release.

"This acquisition is part of the bank's strategy to expand and strengthen its presence in Romania […]. It is the second acquisition made by the US investment fund JC Flowers & Co. in Romania in less than a year. We remain open to similar growth opportunities," said Dominic Bruynseels, executive chairman of First Bank.

Meanwhile, Bank Leumi said its strategy focuses on the commercial banking operations in the US and UK and collaborations with major local companies in other regions. Leumi thus leaves the Romanian market after more than a decade of activity.

Although Leumi is the largest bank in Israel, Leumi Bank Romania is a small bank that ranked 27th out of 35 banks in Romania, at the end of 2017, with assets of only EUR 250 million and a market share of 0.32%.

Leumi Bank had previously reached an agreement with the London-based investment bank Argo in early 2018 to sell its Romanian subsidiary, but the deal went to a dead end after Romania's National Bank raised objections.

editor@romania-insider.com

(Photo source: Facebook / Bank Leumi Romania)