Banca Transilvania’s board of directors approved the agreement on Thursday.
As a result of the transaction, Banca Transilvania will take over all the local operations of Eurobank – lender Bancpost, the financial leasing unit ERB Leasing and consumer finance company ERB Retail Services.
Banca Transilvania and Bancpost will operate as separate entities until the transaction is finalized. After that, Bancpost will be integrated in Banca Transilvania.
Banca Transilvania expects the Romanian central bank and antitrust authority will approve the transaction in the second quarter of 2018.
The acquisition of Bancpost, the ninth lender in Romania with a market share of 2.9%, will bring Banca Transilvania close to market leader BCR, with a market share of about 16%. Banca Transilvania’s market share stood at 13.15% at the end of 2016, which made it the second largest lender in the country.