Sweden-based finance group Nordea has entered into an agreement to acquire a 75% stake in the Russian banking firm Orgresbank for $313.7 million.
Subject to the approval of regulators, the remaining 24.99% will be divided among the current management shareholders of Orgresbank and the European Bank for Reconstruction and Development (EBRD).
The combination of the two companies will aim to capture the growth opportunities in the Russian corporate and retail banking divisions, as well as strengthening Nordea’s platform for servicing its existing business customers in Russia.
The Russian finance institution will be targeting growth in the Moscow and St Petersburg markets, and plans to increase the branch network in order to be present in the most economically developed regions in Russia.
The Scandinavian financial services provider will benefit from this branch network, thus making it possible to penetrate the Russian corporate and retail segments. The acquisition also allows Orgresbank to offer Nordea-developed products to its customers, especially in the areas of mortgages, consumer lending and e-banking.
The transaction is expected to close by the end of the first quarter in 2007.