Romanian Banca Transilvania confirms negotiations for Volksbank takeover

Banca Transilvania (BVB ticker: TLV), the third largest local bank by assets is negotiating the takeover of Austrian group Volksbank’s local subsidiary, which is on sale, the bank said in an announcement on the Bucharest Stock Exchange (BVB). “Banca Transilvania informs its shareholders that negotiations are currently underway for a potential acquisition by the bank of the entire stake in Volksbank Romania. We want to point out that the talks are still ongoing and Banca Transilvania hasn’t signed any binding agreement yet,” reads the bank’s statement. The bank’s representatives said they will inform the market in case the negotiations are successful. Banca Transilvania’s announcement came the same day that Bloomberg wrote about the Romanian bank’s interest for Volksbank. Volksbank, which is currently the largest bank for sale in Romania, with some EUR 2.9 billion in assets, is 51% owned by the Austrian group Volksbanken, which is currently facing financial problems after it didn’t pass the European Central Bank’s stress tests. Its minority shareholders are French group BPCE and German groups DZ Bank and WGZ Bank. Banca Transilvania has EUR 7.7 billion in assets (as of September 30, 2014) and is one of the most profitable local banks. If the bank reaches an agreement to buy Volksbank, it will close on to number two BRD. At the end of May 2014, BRD had 12.9% market share and Banca Transilvania had a 9% share of the total assets of the Romanian banking system. Volksbank was ninth, with 3.7%, according to official data quoted by local financial newspaper Ziarul Financiar. Romania’s largest bank is BCR, which had almost 18% market share, at the same date. Andrei Chirileasa, andrei@romania-insider.com