UniCredit Romania, part of Italy’s UniCredit, announced on Monday that it will merge with Alpha Bank Romania, a subsidiary of Greece’s Alpha Bank, according to See News.
Alpha Bank will retain a 9.9% stake in the merged entity and receive a cash payment of 300 million euro, potentially adjusted based on asset quality assessments from the due diligence process.
The merger will create the third largest bank in Romania, with a total market share of 12%, UniCredit Bank Romania said in a press release.
The completion of the transaction is expected in 2024, subject to due diligence, corporate merger approvals, and all necessary regulatory approvals, including those related to competition.
“This is the first acquisition that UniCredit has made in 15 years, signaling the inherent potential that we, as a business, see in Romania and in the Central and Eastern Europe region. The opportunity offered by this merger is significant not only for our current and future customers, but also for the employees of both institutions,” said Andrea Orcel, CEO of UniCredit Group.
UniCredit Group’s consolidated net profit from operations in Romania rose 65% year-on-year to 133 million euro in the first six months of 2023. The group operated 141 branches in Romania at end-June.