Romanian businessman Dorinel Umbrărescu, known as one of the local “asphalt kings” due to his construction companies’ infrastructure contracts with the state, has reached an agreement to sell his bank, Banca Română de Credite şi Investiţii (BRCI).The deal is currently being analysed by Romania’s National Bank (BNR) for compliance with local regulations.

Umbrarescu has been trying to sell his credit institution for about three years and was reportedly ready to give it away for only the price of a banking license (EUR 10 mln), Economica.net reported.

According to sources contacted by Economica.net, BRCI was sold to an English group. Sources close to the transaction say Indian investor Lakshmi Mittal, the former owner of the Sidex Galaţi steel plant, is the one who bought the bank through his financial vehicles. Mittal  sold his biggest local business, steel producer ArcellorMittal Galati (formerly Sidex), as part of a regional deal, in 2018. ArcelorMittal still controls three Romanian companies in the steel industry.

Update: Hotnews.ro reported that the BRCI buyer is actually Indian investor Sanjeev Gupta, the new owner of the Galati steel plant. Gupta controls steel group Liberty House. This would make more sense, since the new Sidex owner announced significant investments in Romania. 

BRCI posted RON 9.2 million (EUR 2 mln) losses in 2018, not much different from the 2017 result, according to data from the Ministry of Finance. Since 2014, when it started operating, until 2018, BRCI accumulated almost RON 90 mln (EUR 20 mln) in losses. The bank has no units except for its headquarters in Bucharest.

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editor@romania-insider.com