Belgium-based KBC Bank has wrapped up the acquisition of the Bulgarian operations of Austrian lender Raiffeisen Bank International (RBI) for approximately €1bn in cash
The deal, announced in November 2021, also covers Raiffeisenbank Bulgaria’s wholly-owned subsidiaries Raiffeisen Leasing Bulgaria, Raiffeisen Asset Management (Bulgaria), Raiffeisen Insurance, and Raiffeisen Service.
Go deeper with GlobalData
The acquired bank began operations in 1994 and offers a full range of financial services to individuals, SMEs and business customers.
With a network of 122 branches, 2,500 employees and a customer base of 635,000, Raiffeisenbank (Bulgaria) ranks sixth in the Bulgarian market.
Through the deal, KBC – which operates in the country via United Bulgarian Bank (UBB) and other subsidiaries – hopes to further bolster its presence in the country’s banking space.
To this end, it will merge the operations of UBB and Raiffeisenbank (Bulgaria).
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataThe merged entity is expected to become the biggest bank in Bulgaria, with a 19.3% market share in terms of assets.
The deal will add around 75 basis points to its CET1 ratio for RBI and the proceeds will be reallocated to support growth in key markets.
KBC Group CEO Johan Thijs said: “Over the past 15 years, KBC Group has established itself as the biggest investor in Bulgaria, taking the leading position as part of the consolidation of Bulgaria’s financial sector.
“By acquiring Raiffeisenbank (Bulgaria) and its subsidiaries, we will now ensure high-quality financial intermediation for over 2.5 million Bulgarian customers.”
KBC Group Bulgaria CEO Peter Roebben said: “The acquisition of Raiffeisenbank (Bulgaria) further strengthens KBC Group’s leading position as the top integrated financial group in the country.
“We are fully prepared to quickly and decisively proceed with the merger of Raiffeisenbank (Bulgaria) and UBB. In particular, we will ensure that we pay proper attention to the needs of our customers and staff throughout this process.”
