Banca Transilvania strengthens its position by acquiring Volksbank Romania

Banca Transilvania today announces that it has recently signed a binding agreement to acquire 100% of the shareholding of Volksbank Romania S.A. (VBRO) from Österreichische Volksbanken AG, Groupe BPCE, DZ BANK AG and WGZ BANK AG. This is in line with BT’s strategy to add value to its shareholders by making opportunistic acquisitions of Romanian banks or single loan portfolios.

BT and VBRO will operate as separate entities over the next months, pending the successful closing of the Transaction which is still subject to limited set of conditions including antitrust, merger clearance and NBR approval. Upon the successful completion of the Transaction, BT is planning to fully integrate the business of VBRO into BT’s existing structure.

Horia Ciorcilă, Chairman of the Board of Directors of Banca Transilvania, commented as following: „The acquisition of Volksbank Romania is part of our bank’s growth and consolidation strategy, reaffirming our commitment as an active market player and supporter of the Romanian economy. After the integration, considering the market shares of the two banks, BT aims to become the 2nd largest bank in Romania. Banca Transilvania is well capitalized, enjoys high liquidity, an increasing market share and positive financial results”.

Banca Transilvania and Volksbank Romania are both universal banks sharing a similar business model, the same business lines and the same target market. As a result of this Transaction, BT aims to harmonise the strengths of the merged entity, in order to enhance efficiency, reduce costs for customers, expand the branch network and launch new products. At present, BT is the largest banking institution majority-owned by private Romanian equity capital and ranks as number 3 in the Romanian banking market, with an increasing market share of 9.7% based on assets.

Banca Transilvania’s consultants in this transaction were: Legal – Law Firm Peli Filip, Financial – KPMG, Investment Banking – VCP Vienna Capital Partners, Volksbank consultants were:  Legal - Schoenherr şi Asociaţii, Investment Banking – Rothschild.

Banca Transilvania is among the first 3 banks in Romania, in terms of assets. BT’s activity is organized on 3 main business lines: retail, SME and corporate. Banca Transilvania has over 6.000 employees, a network of over 550 units and 1,8 million clients. BT is the first banking institution in Romania to be listed on the Bucharest Stock Exchange (BSE) in 1997. Its strategy is supported by powerful shareholders, such as EBRD, which holds 15% of share capital and IFC, the Investment Division of the World Bank.