An important bank disappears from Romania. The decision approved by the state

A well-known bank disappears from Romania! It is the decision of the moment in the banking system. It is another banking institution that has been sold. The Competition Council approved the transaction. What it is?

The Competition Council approved the transaction in which Intesa Sanpaolo SpA is to take over First Bank SA

Intesa Sanpaolo SpA is active mainly in the financial-banking sector. It is the parent company of the Intesa Sanpaolo group. The Intesa Group is present in Romania through its subsidiary, Banca Comercială Intesa Sanpaolo România SA

First Bank will be taken over by Intesa Sanpaolo

First Bank SA is a credit institution with an active presence on the financial-banking services market in Romania. This bank manages a network of 40 branches. It provides services for both individuals and legal entities.

The Competition Council, following the analysis carried out, concluded that the proposed transaction does not create significant obstacles for effective competition on the Romanian market or on a significant part of it and that there are no serious doubts regarding its compatibility with a normal competitive environment.

The investment will double Intesa’s presence in Romania

In October 2023, Italy’s Intesa Sanpaolo announced plans to acquire First Bank in Romania from the American private equity fund JC Flowers.

In 2018, JC Flowers acquired First Bank from Piraeus Bank. A year later, it also took over smaller rival Leumi, which was integrated into the First Bank brand.

This investment will double Intesa’s presence in Romania. Its local unit has 60,000 customers and 34 branches with assets of €1.5 billion. Intesa Sanpaolo has been present in Romania since 1996.

Smaller purchases in certain European regions

Intesa Sanpaolo SpA is examining the possibility of making smaller acquisitions in the European regions where it operates and in the countries around the Mediterranean Sea to strengthen some of its core activities.

Marco Elio Rottigni, the head of Intesa’s International Subsidiary Banks Division, gave details in this regard. It showed that while the focus is on organic growth, the bank is open to capitalizing on external growth opportunities that may arise.

According to it, such an acquisition must generate synergies, integrate into the business model and be made at a fair value.

ISBD has operations on three continents through 11 commercial banks in Central and Eastern Europe and Egypt, and owns a wealth management company in China. With an extensive network of nearly 700 branches and approximately 21,000 employees, it serves seven million customers.