A well-known Romanian bank, also present in Moldova, is disappearing. Who is it?

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The Competition Council has authorized the transaction by which Banca Transilvania is buying the Romanian entities of the Hungarian OTP Group, namely OTP Bank Romania, OTP Leasing Romania IFN, OTP Asset Management Romania, OTP Factoring SRL and its subsidiaries OTP Consulting Romania SRL, OTP Advisors SRL and OTP Bank Romania Foundation, Bani.md reports.

“Following its analysis, the Competition Council found that the transaction does not raise significant obstacles to effective competition on the Romanian market or a substantial part of it and that there are no serious doubts as to its compatibility with a normal competitive environment,” the institution’s representatives said on Monday, July 15.

On February 8, 2024, Banca Transilvania’s Board of Directors approved the finalization of the transaction to acquire 100% of the shares of OTP Bank Romania, as well as other companies of the OTP Romania Group (including OTP Asset Management SAI and OTP Leasing Romania IFN) for EUR 347.5 million.

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Thus, following this agreement, OTP Bank is leaving Romania after 20 years, during which it has gained ground through acquisitions and organic growth, climbing into the top 10 of the largest banks on the local market.

OTP Bank is the fourth bank acquired by Banca Transilvania – the local banking market leader with a market share of over 20% – after Idea Bank (2022), Bancpost (2018), and Volksbank (2015). In addition to approval from the Competition Council, the transaction still needs the approval of the NBR. At the negotiation stage, Banca Transilvania said it would also buy the Moldovan subsidiary of OTP.

OTP Bank in the Republic of Moldova is part of the group of systemic banks. The financial institution posted a profit of 233.7 million lei at the end of May 2024. It has assets of 20.4 billion lei, attracted deposits of 15.5 billion lei, and granted loans of 7.5 billion lei.