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BBVA Sells Romania Business to Raiffeisen for $680 Million

Spain's BBVA agreed to sell its Garanti BBVA Romanian unit to Austria's Raiffeisen Bank International for €591 million ($680.2 million), making Raiffeisen the third-largest bank in Romania by assets.

Key Points

  • BBVA sells Garanti BBVA Romania to Raiffeisen for €591 million ($680.2 million)
  • Raiffeisen's Romanian subsidiary will become the third-largest bank in Romania by assets
  • Garanti BBVA Romania has €4 billion in assets and 2% market share
  • Deal represents continued consolidation in Central and Eastern European banking

Full Details

Banco Bilbao Vizcaya Argentaria (BBVA) has completed a strategic exit from the Romanian market, agreeing to sell its Garanti BBVA subsidiary to Raiffeisen Bank International for €591 million (approximately $680.2 million). The transaction, announced Saturday, will significantly expand Raiffeisen's presence in Central and Eastern Europe. Garanti BBVA's Romanian unit is the tenth-largest financial institution in Romania with total assets of €4 billion and a 2% market share as of the end of last year. Following the acquisition, Raiffeisen's Romanian subsidiary will become the third-largest bank in the country by total assets. Raiffeisen CEO Johann Strobl described the deal as a significant strategic move in one of the most attractive banking markets in Central and Eastern Europe, emphasizing the bank's deep familiarity with the Romanian market.

Why It Matters

This transaction reflects the ongoing consolidation in European banking, as larger regional players seek scale in attractive markets like Romania. The deal strengthens Raiffeisen's position as a major banking player in Central and Eastern Europe while allowing BBVA to optimize its portfolio.

Sourcewsj.com

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