Hungarian lender OTP Bank, through its Bulgarian subsidiary DSK Bank, has concluded the acquisition of a 99.74% stake in the Bulgarian unit of French banking group Societe Generale.
OTP secured regulatory nod for the deal in November 2018. Under the agreement, OTP will acquire Societe Generale Expressbank and other subsidiaries of the group in Bulgaria.
SGEB, with a market share of around 6.4%, ranks as the seventh largest bank in Bulgaria. It offers both retail as well as corporate banking services.
The integration process is scheduled to be wrapped up next year.
The deal, whose financial terms were not revealed, was first announced in August last year.
Simultaneously, OTP also announced plans to acquire a stake of 88.89% in Banka Societe Generale Albania, Societe Generale’s subsidiary in Albania.
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At that time, Societe Generale said that the two transactions will lower its risk weighted assets by nearly €3bn and have a positive impact on its CET1 ratio.
At the same time, the two parties are in talks over a services agreement. The agreement would involve mutual services in various fields such as investment banking, capital markets, financing and global transaction banking in Albania, Bulgaria, Croatia and Hungary.