Raiffeisen Acquires BBVA's Romania Unit for $680 Million

This transaction positions Raiffeisen's Romanian subsidiary to become the country's third-largest bank by total assets, significantly expanding its market presence. Garanti BBVA's Romanian subsidiary was the tenth largest financial institution in Romania, holding 4 billion euros in total assets and a 2% market share as of the end of last year, according to Spain's Banco Bilbao Vizcaya Argentaria (BBVA).

Raiffeisen Bank International (RBI) plans to merge the acquired business with its existing Romanian operations, citing the market's attractiveness for both retail and corporate and investment banking. Raiffeisen Chief Executive Johann Strobl stated this deal represents a "significant strategic move" in a well-known Central and Eastern European market.

BBVA estimates the sale will boost its CET1 ratio by approximately 10 basis points and add 112 million euros to its group income statement. Conversely, Raiffeisen anticipates a 60 basis point hit to its CET1 ratio, excluding Russian operations.

The deal is expected to close in the fourth quarter, pending regulatory approvals.