Competition Authority Approves OTP Bank Romania Acquisition
The Romanian Competition Authority has approved the acquisition of OTP Bank Romania, leading to OTP Bank’s withdrawal from the Romanian market. This decision comes after unsuccessful attempts by OTP Bank Romania to acquire other financial institutions in the country, such as Banca Românească and Garanti BBVA Romania in previous years.
The agreement for the acquisition was reached between Banca Transilvania and OTP Bank in February. The sale price for the transaction amounts to EUR 347.5 million, resulting in a negative after-tax impact on the consolidated financial statement of HUF 59.5 billion. The financial closing of the transaction is expected to take place in 2024, subject to regulatory approvals.
With this transaction, OTP Bank will officially withdraw from the Romanian market. The Romanian Competition Authority has concluded that the operation does not raise significant barriers to competition and is compatible with a normal competitive environment.
As a result of the acquisition, Banca Transilvania, the market leader in the Romanian financial sector by assets, will see its assets exceed RON 180 billion, with a market share of 22.5 percent. OTP Bank, previously the tenth largest player in the market with a 2.46 percent share, will no longer operate in Romania.
OTP Bank Group, Hungary’s largest commercial bank, operates in various countries in Central and Eastern Europe through its subsidiaries. Apart from banking services, OTP Group also offers insurance, real estate, factoring, leasing, asset management, investment, and pension funds services.
The acquisition of OTP Bank Romania by Banca Transilvania marks a significant development in the Romanian financial sector, consolidating Banca Transilvania’s position as a key player in the market.
