Hungary's OTP in talks to buy Garanti BBVA's Romanian unit

REUTERS
BUCHAREST
Published 23.01.2020 17:18
Updated 23.01.2020 17:19
People walk by Hungary's biggest commercial bank, OTP Bank, in Budapest, Hungary, June 22, 2014. iStock Photo
People walk by Hungary's biggest commercial bank, OTP Bank, in Budapest, Hungary, June 22, 2014. (iStock Photo)

Hungary's OTP Bank is in talks to buy Garanti BBVA's Romanian unit, Romanian online financial news outlet Profit.ro said, citing banking market sources.

Sources in Hungary told Reuters on Wednesday that OTP was interested in the Romanian bank. Garanti is Romania's 10th-largest bank by assets.

OTP and Garanti did not immediately reply to requests for comment.

OTP's Chief Executive and Chairman Sandor Csanyi said earlier this year that OTP was interested in buying more banks in Slovenia after purchasing the regional unit of France's Societe Generale last year.

Csanyi has also said OTP, which operates banks in 12 European countries, plans to expand into new countries and possibly beyond Europe.

OTP and Garanti started the due diligence process last year, the banking sources said.

OTP shares were trading 0.6% higher at 14,370 forints ($376.54) at 10:08 a.m. GMT, roughly in line with the main market index.BUX.

Garanti BBVA Romania is held by Garanti BBVA Turkey. Spanish financial group Banco Bilbao Vizcaya Argentaria (BBVA) is the majority shareholder of Garanti BBVA Turkey, according to the official website of the Romanian bank.

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