PARIS (dpa-AFX) - BNP Paribas Group (BNP.L, BNPQY.PK) and Raiffeisen Bank International said Tuesday that they have reached an agreement for the acquisition of the core banking operations of Raiffeisen Bank Polska to be combined with the subsidiary of BNP Paribas in Poland, BGZ BNP Paribas.
The transaction price is set at PLN 3.20 billion plus a price complement of PLN 50 million for digitalization investment projects to be developed before closing. The total value will be PLN 3.25 billion or 775 million euros. The deal price corresponds to around 87 percent of the Core Bank estimated book value at closing and around 95 percent of its tangible book value.
The acquisition is expected to have an impact of -10bp on the BNP Paribas's CET1 ratio and to improve the earning per share by around 1 percent as of 2020. The transaction is expected to strengthen BGZ BNP Paribas' position in the Polish market. The combined bank would have attained an over 6 percent market share in loans and deposits at year-end 2017.
The Core Bank consists of the business of Raiffeisen Bank Polska, excluding the foreign currency retail mortgage loan portfolio and excluding a limited amount of other assets.
Corporate and retail gross loans of the Core Bank amount to PLN 19 billion or 4.5 billion euros and customer deposits to PLN 34 billion or 8.1 billion euros at year-end 2017.
The closing of the transaction is expected in the fourth quarter of 2018.
Przemek Gdanski CEO of BGZ BNPP said, 'I believe that this transaction will strengthen our position amongst the largest banks in Poland bringing us much closer to the top 5. We are glad to become with this transaction an active participant in the consolidation of the Polish banking sector.'
Copyright RTT News/dpa-AFX