UniCredit Bank increases its presence in Romania by merging

UniCredit Bank S.A.
Fri, 15/12/2023

UniCredit merges with Alpha Bank

UniCredit S.p.A. (UniCredit) announces that it has agreed on the key economic conditions for the merger of UniCredit Bank S.A. with Alpha Bank Romania S.A., creating the third largest bank on the local market, with a combined market share of 12% in terms of total assets.

The merger will bring together two truly complementary franchises, both with long histories, relationships, and expertise in this country with significant economic growth. In particular, the existing positions of UniCredit Bank and Alpha Bank both in the corporate and retail segments will increase their common position in the future.

This transaction allows UniCredit to increase its presence in Romania, a key country for its geographical footprint, further strengthening not only its local commitment, but also its commitment to the wider region, Central and Eastern Europe, as a whole.

The customers of united banks will benefit from access to a range of services and products of the best quality through UniCredit's global product factories, as well as beneficial terms and conditions from their partners who are part of this transaction.

The newly created bank will be well-positioned to create new growth opportunities. This will support UniCredit's commitment to its clients and the communities in which it operates, as well as expand the potential for its and Alpha Bank's employees through access to 14 markets.

Both parties will ensure continuity and high-quality services to their customers and employees during the transition period, focusing on stability and transparency as the merger process progresses.

The completion of the transaction is expected in 2024, subject to the completion of a due diligence process, obtaining corporate approvals for the merger, and all necessary regulatory approvals and agreements, including competition. Upon completion, Alpha Bank is expected to hold 9.9% of the combined entity's share capital and to receive a cash consideration of 300 million EUR. The cash component remains subject to post-due diligence adjustments related to asset quality, if applicable.