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Société Générale to dispose of banks to OTP
Posted on Thursday, 02 August 2018 14:43
Société Générale is to divest its majority shares in Société Générale Expressbank (Bulgaria) and Société Générale Albania to OTP Bank for an undisclosed sum. OTP did confirm that, subject to regulatory approvals and clearances from banking and antitrust authorities, the two separate transactions are expected to complete in the coming months. According to reports, the buyer will acquire 99.7 per cent of Expressbank with its Hungarian unit DSK Bank to buy 88.8 per cent of the vendor’s Albanian asset. A deal would impact positively on Société Générale’s common equity tier 1 ratio by 12 basis points, as well as reducing its risk weighted assets by about EUR 3.00 billion. Phillipe Heim, head of the group’s international retail banking, financial services and insurance operations, said the sale of the two banks is in line with its “transform to grow” strategy, which is designed to increase its presence on the market with larger investments that can create synergies with other businesses. Société Générale and OTP are currently involved in discussions to enter a services agreement that would allow access into fields such as investment banking, capital markets and financial and transaction banking in Eastern Europe, including Albania, Bulgaria, Croatia and Hungary. According to Zephyr, the M&A database published by Bureau van Dijk, there have been 1,142 deals targeting commercial banking providers announced worldwide since the beginning of 2018. The largest of these is worth USD 14.99 billion and takes the form of a capital increase in national commercial banking services company Agricultural Bank of China by New China Life Insurance. © Zephus Ltd