The contract will be signed later today after Banca Transilvania’s Board approved the takeover Tuesday, the bank said in a news release.
Banca Transilvania will acquire full ownership of Volksbank Romania from Österreichische Volksbank en AG, Groupe BPCE, DZ BANK AG and WGZ BANK AG.
“This is in line with (Banca Transilvania’s) strategy to add value to its shareholders by making opportunistic acquisitions of Romanian banks or single loan portfolios,” the statement reads.
The two banks will operate as separate entities over the next months, pending the successful closing of the transaction, which will require antitrust clearance and central bank’s approval.
“After the integration, considering the market shares of the two banks, (Banca Transilvania) aims to become the second largest bank in Romania. Banca Transilvania is well capitalized, enjoys high liquidity, an increasing market share and positive financial results,” said Horia Ciorcila, Banca Transilvania’s chairman.
Banca Transilvania’s consultants in this transaction were law firm Peli Filip, KPMG, and VCP Vienna Capital Partners, while law firm Schoenherr & Associates and Rothschild assisted Volksbank.