The National Bank of Romania (BNR) last week has rejected the intention of OTP Bank Romania to acquire a 99.28 percent stake in Banca Romaneasca, mentioning that the reasons on which the decision is based cannot be revealed.
Local subsidiary of Hungary-based OTP Bank reacts today in an extraordinary announcement, pointing out that the financial institution management is analysing the legal aspects of the letter of the supervisory authority, the deadline for appealing against the objection is March 29,2018.
“OTP Bank’s management is still committed to enhance its presence in Romania via organic growth or further acquisitions. Simultaneously, OTP Bank adheres to its acquisition strategy dedicated to the Central and Eastern European region and beyond the capital required for organic growth the management intends to allocate significant part of the generated excess capital for further value-creating acquisitions,” the announcement reads.
Central bank’s decision came after the Romanian Competition Council approved the takeover agreement in December 2017. OTP signed a deal in July last year with National Bank of Greece to purchase Banca Romaneasca.
But the sale, which had been expected to close later this year, needed regulatory approval by the central bank.
According to sources, the acquisition would have increased OTP Bank Romania’s market share to around 4 percent, making the bank the eighth largest lender in Romania.
Hungarian banking group OTP reported an increased consolidated adjusted after-tax profit of its Romanian unit by 88 percent year-on-year in 2017, reaching RON 44.85 million.