Competition body reportedly clears takeover of OTP Romania by Banca Transilvania

Romania's competition body, Consiliul Concurentei, approved the deal by which Romania's leading financial group, Banca Transilvania (BVB: TLV), takes over the local subsidiaries of Hungarian group OTP, according to Profit.ro.

Banca Transilvania's market share by assets will reach 22%-23% after the deal, from just under 20% before.

The competition body has not yet published the official release on the deal.

The subsidiaries subject to the deal are OTP Bank Romania, OTP Leasing Romania IFN, OTP Asset Management Romania, OTP Factoring, as well as the subsidiaries OTP Consulting Romania, OTP Advisors, and Fundația OTP Bank Romania.

Both Banca Transilvania and OTP Bank Romania will act as separate entities until the transaction is completed, which is expected to take several months.

The transaction price is EUR 347.5 million, which is lower than the value of OTP's EUR 400 million own funds.

"For the BT Group, the acquisition of OTP Group's business in Romania is an opportunity to strengthen our leading position and contribute to the consolidation of the Romanian banking market. We will continue pursuing our ambitious plans [through] organic growth, but also maintaining an active role in further M&A possibilities," said Horia Ciorcilă, chairman of Banca Transilvania's board of directors, speaking of the deal in February.

Banca Transilvania announced in February that it had signed a contract to take over 100% stakes in all the subsidiaries operated by Hungarian group OTP Bank in Romania.

OTP Bank Romania is the eleventh largest bank in the country by assets, with a market share of 2.64% (as of September 2023). Banca Transilvania is the market leader with a 19.91% share.

(Photo source: OTP Bank Romania)