Hungary-based OTP Bank has agreed to buy majority stakes in the Bulgarian and Albanian subsidiaries of Societe Generale for an undisclosed price.
Image: OTP Bank in Hajdúszoboszló, Hungary. Photo: courtesy of Nyar94/Wikipedia.org.
OTP Bank is an independent financial services providers in Central and Eastern Europe, offering a range of banking services for private individuals and corporate clients.
In Bulgaria, the French multinational banking company will sell its stake of 99.74% in Societe Generale Expressbank (SGEB) to OTP Bank’s Bulgarian subsidiary DSK Bank EAD.
SGEB has a market share of around 6.7% and is the 7th largest bank on the Bulgarian banking market. The bank is active in the retail and corporate segments and its acquisition by OTP Group will further strengthen the latter’s market position in Bulgaria.
OTP Bank, which has been doing business in Bulgaria since 2003, expects the transaction to close in the fourth quarter of this year, subject to receipt of all required regulatory approvals.
In Albania, the Hungarian banking group has agreed to buy a stake of 88.89% in Banka Societe Generale Albania (SGAL) from Societe Generale.
SGAL is claimed to be the fifth largest bank on the Albanian banking market with a market share of around 6%, said OTP Bank. It operates actively in the retail and corporate segments.
The transaction will be closed in the fourth quarter of this year should it receive all the mandatory regulatory approvals.
Societe Generale Group deputy CEO Philippe Heim said: “The sale of Societe Generale Expressbank in Bulgaria and Societe Generale Albania is an important milestone in the implementation of Societe Generale’s Strategic and Financial plan “Transform to Grow”, whose primary objectives are to focus and develop its presence on markets and activities with a critical size and the potential for generating synergies with other Group businesses.
“International Retail Banking activities are a profitable growth engine for Societe Generale Group and we are committed to pursue their development”.
Apart from the two deals, Societe Generale and OTP Bank are looking to enter into a services agreement that would encompass the provision of mutual services in multiple fields in Albania, Bulgaria, Croatia and Hungary.
At the end of last month, Societe Generale entered into an agreement to offload Societe Generale Private Banking Belgium, its private banking business in Belgium, to ABN AMRO Bank for an undisclosed price.