Hungary’s OTP Bank has terminated the agreement to acquire Romanian lender Banca Romaneasca (BROM) from the National Bank of Greece (NBG).
“OTP Bank Plc. („OTP Bank”) hereby informs the capital markets in connection with the acquisition of the 99.28% shareholding held by National Bank of Greece S.A.(“NBG”) in Romanian Banca Romaneasca S.A. (“BROM”) and the acquisition of other Romanian exposures of other Romanian subsidiaries of NBG by OTP Bank Romania S.A. (“OBR”) (“Transaction”) that – due to the non-fulfilment of the conditions precedents by the longstop date- the share purchase agreement entered into on 26 July 2017 has been terminated,” the Hungarian bank said in a statement.
In July 2017, OTP Bank entered into a share purchase agreement to acquire NBG’s 99.28% stake in Romaneasca. The deal secured the green light from Romania’s anti-trust regulator in December 2017.
The decision was rejected by the National Bank of Romania last month. The central bank did not offer reasons for its decision.
OTP filed an appeal against the decision of the Romanian apex bank. However, following the decision to terminate the deal, the appeal has also been withdrawn.
The acquisition, if successful, would have increased OTP’s market share in the Romanian market by nearly 4%, making it the eighth biggest bank in the country.