OTP Bank Romania signed an agreement at the end of July to buy Millennium Bank Romania for EUR39 million.
As part of the takeover process, OTP Bank will refund Millennium bcp approximately EUR150 million for the intragroup financing provided to Millennium Bank Romania and will replace it with equal financing from the Hungarian group.
Millennium Bank Romania runs 56 branches and serves some 80,000 customers. At the end of 2013, the bank had total assets worth 2.38 billion lei (some EUR635 million) and a 0.8% market share.
Following the deal, which is pending approvals from the antitrust watchdog, the Romanian central bank, Portuguese central and and the European Commission, OTP Bank Romania will increase its market share to 2.1% and will be the 11th largest lender on the local market.