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Hungary’s OTP agreed to buy NBG’s Banca Romaneasca, media sources

Hungary-based OTP Bank has concluded an agreement to buy the local subsidiary of National Bank of Greece (NBG), Banca Romaneasca, sources close the deal told Reuters on Friday.

“There is a deal, NBG’s unit will be sold to OTP,” a source in Athens said.

OTP executives have said publicly they were in the running for Banca Romaneasca as well as other banks in the region as they look to support the bank’s presence in central Europe.

NBG plans to sell more assets in the Balkans, including its Romanian operations, to complete a restructuring plan agreed with European authorities, its chief executive Leonidas Fragiadakis stated recently.

“This M&A event was well-anticipated,” analysts said. “OTP could have a 3.6 percent market share (in Romania) versus a management target of 5 percent. The price-to-book could be the same as it was in Croatia (in May).” OTP bought Croatian Splitska Banka from Societe Generale for a price close to book value.

OTP, which will add Banca Romaneasca’s network of about 110 branches, is also expected to pay back a loan of EUR 550 million that the local subsidiary of the financial institution borrowed from NBG.

None of those involved in the transaction could be contacted for an official statement.

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