OTP Bank has brokered a deal with Alpha Bank to acquire 100% shareholding of its Albanian subsidiary.
Hungary-based OTP Bank had agreed to pay $62.05m for the acquisition.
OTP Bank noted that Alpha Bank is the 8th largest lender in the Albanian banking market with a total asset-based market share of almost 5%.
The lender offers its services to both retail and corporate customers.
As per media reports, the acquisition is expected to create a leading banking group in Albania, which will hold nearly 11% market share.
OTP Bank is said to be one of the largest financial service providers in Central and Eastern Europe.
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It currently operates in Bulgaria, Croatia, Romania, Serbia, Ukraine, Russia, Moldova, Montenegro, and Slovenia via its subsidiaries.
The deal awaits regulatory approval and is expected to close in the second quarter of 2022.
Notably, Greek lenders have been trying hard to get rid of the €30bn bad loan, accumulated due to a decade long financial crisis, which lowered the country’s output by a quarter.
Earlier this year, media reports emerged that Alpha Bank had hired JPMorgan and Goldman Sachs as advisers for €800m ($980m) capital raise aimed at supporting its growth.
In April 2021, another Greek lender, Piraeus Bank received shareholders’ nod to raise around €1bn ($1.19bn).
Separately, in June this year, OTP Bank entered into a share sale and purchase agreement to take over Slovenian bank Nova KBM and its subsidiaries.