2023-10-30 17:04:00
Intesa Sanpaolo SpA, which has been negotiating for several months the acquisition of First Bank in Romania, from the American investment fund JC Flowers, has completed the negotiations.
National Bank of Romania – BNRPhoto: Hotnews
Commenting on the share purchase agreement by the Intesa Sanpaolo Group for the acquisition of 99.98% of the shares of First Bank SA from the American private investment fund JC Flowers & Co., Marco Elio Rottigni, Head of the Subsidiary and International Banks Division of Intesa Sanpaolo, said :
“We welcome First Bank employees and customers to the Intesa Sanpaolo Group. This operation doubles our presence in Romania, a country of significant economic growth with strong ties to Italy, and is in line with our strategy to take advantage of value opportunities while maintaining a focus on organic growth and driving profitability. The expansion in Romania strengthens our position as a solid bank in Central and Eastern Europe and actively supports the internationalization of Italian companies. We look forward to working with our new colleagues soon.”
According to Bloomberg, the value of the transaction would be around 200 million euros ($216 million).
In January, Bloomberg announced that JC Flowers wants to sell First Bank and had preliminary discussions with UniCredit SpA but no agreement was reached. Separately, in July UniCredit decided not to continue negotiations for the acquisition of the Romanian subsidiary of OTP Bank Nyrt.
Intesa Sanpaolo SpA, the largest bank in Italy, has a subsidiary in Romania, which has assets of approximately 1.5 billion euros and over 60,000 customers.
First Bank provides a diversified range of products and financial services to retail customers, SMEs and large companies.
JC Flowers acquired First Bank from Piraeus Bank in 2018. A year later, it took over smaller rival Leumi, which was incorporated into the First Bank brand.
Intesa Sanpaolo SpA is considering smaller acquisitions in the European regions where it operates and in countries located around the Mediterranean Sea, in order to strengthen some of its core activities. “While we focus on organic growth, the bank is prepared to benefit from external growth opportunities that may arise. An acquisition should bring synergies, be compatible with our business model and be done at the right value – conditions we don’t see at the moment,” Marco Elio Rottigni, head of Intesa’s International Subsidiary Banks Division (ISBD), told Bloomberg.
ISBD operates on three continents, through 11 commercial banks in CEE and Egypt, and has a wealth management company in China. Through a network of nearly 700 branches and approximately 21,000 employees, it serves seven million customers.
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