Société Générale Expressbank has a market share of about 6.7%, making it Bulgariaʼs seventh-biggest bank. OTP will make the acquisition in Bulgaria through its local unit DSK Bank, the countryʼs second-biggest bank, national news agency MTI reported.
DSK Bank had total assets of about BGN 12.4 billion at the end of last year, while Société Générale Expressbank had total assets of around BGN 7 bln, earnings reports released by the lenders show.
In a separate disclosure, OTP said it agreed to acquire an 88.89% stake in Banka Société Générale Albania, which has a market share of close to 6% and is the fifth-largest bank on the market. OTP expects to close both transactions in Q4 2018, pending regulatory approval.
In addition to the transactions, OTP said it is in talks with Société Générale on entering into a services agreement on providing mutual services in Albania, Bulgaria, Croatia and Hungary. These services would include, but not be limited to, investment banking, capital markets, financing and global transaction banking.