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March 2, 2021

Movements on the banking market

OTP Bank takes over Millennium, UniCreditTiriac buys RBS Romania’s corporate portfolio

According to Competition Council documents, the institution has approved OTP Bank Romania’s takeover of the local branch of Portugal’s Millennium bcp Bank and UniCredit Tiriac Bank’s purchase of RBS Romania’s portfolio of corporate clients, without objecting to the economic concentration in each case.
At the end of July, OTP signed a contract for the purchase of 100 per cent of Millennium Bank Romania shares, the value of the transaction standing at EUR 39 M. Millennium Bank Romania was 22nd in the banking system at the end of last year, with assets of RON 2.83 bln (around EUR 635 M) and a market share of 0.8 per cent. Consequently, OTP Bank will hike its market share to 2.1 per cent and will climb to 11th place in the rankings.
In its turn, UniCredit Tiriac Bank will take over the corporate business of RBS Romania, which will leave the local market, the business being made up of over 500 medium and large, local and international companies, as well as public and financial institutions. The purchase entails assets of approximately EUR 260 M and deposits of EUR 315 M.
UniCredit Tiriac Bank and UniCredit Consumer Financing signed in April 2013 a contract for the purchase of RBS Romania’s retail portfolio, which included assets of EUR 315 M and liabilities of EUR 230 M, the transaction also including the private banking portfolio. This was the first large transaction taking place within the Romanian banking system after the financial crisis. The transfer of clients to UniCredit was finalized in September 2013.

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