Austria’s Raiffeisen to buy BBVA’s Romania unit for $680 million

Industry:    1 day ago

Austria’s Raiffeisen Bank said on Saturday it would buy Garanti BBVA’s ​Romanian business for 591 million euros ($680 million), its ‌first significant acquisition in recent years.

The deal marks a turning point for Raiffeisen, which has long been under pressure to withdraw ​from Russia due to its invasion of ​Ukraine and the imposition of Western sanctions on ⁠Moscow.

Raiffeisen’s CEO Johann Strobl said his bank has a ​strong capital base and is pursuing both organic growth ​and acquisitions in its core markets.

“This transaction is a significant strategic step in one of the most attractive banking markets in ​Central and Eastern Europe, a country we know very ​well,” he said in a statement.

Raiffeisen said the acquisition should make ‌it ⁠the third-largest bank in the Romanian banking market by total assets. Raiffeisen expects to close the deal in the fourth quarter.

It plans to integrate the business with ​its existing ​Romanian operations.

Istanbul-listed Garanti ⁠is a majority-owned unit of Spain’s BBVA, which estimates the transaction will have ​a net positive impact of around 10 ​basis points ⁠on its CET1 ratio and 112 million euros on the group’s income statement.

Raiffeisen said the transaction is expected ⁠to ​have around a minus 60 basis ​point impact on its CET1 ratio.

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