site.btaUBB and Raiffeisenbank Bulgaria to Merge, Becoming Biggest Bank in Country

KBC Group and Raiffeisen Bank International (RBI) Thursday completed the deal announced on  November 15, 2021 concerning the acquisition of 100% of the shares of Raiffeisenbank Bulgaria EAD, which is responsible for the banking operations of RBI in Bulgaria, KBC Bank said in a press release. With the Group's United Bulgarian Bank (UBB) and Raiffeisenbank Bulgaria merging their operations, the pro forma combined entity would achieve a 19.3% market share in terms of assets (compared to 11.4% for UBB today), making it the biggest bank in Bulgaria.

The transaction also includes Raiffeisenbank Bulgaria's fully owned subsidiaries Raiffeisen Leasing Bulgaria, Raiffeisen Asset Management (Bulgaria), Raiffeisen Insurance Broker, and Raiffeisen Service.

The acquisition, worth a total of EUR 1,009 million paid in cash, reflects the quality of the Raiffeisen franchise in Bulgaria and the potential for synergy.

Raiffeisenbank Bulgaria ranks sixth with a local market share of 7.9% in assets and 8.4% in loans. The bank has a network of 122 bank branches across the country which are complemented by a network of mobile banking advisors, external partners and credit intermediaries. Raiffeisenbank Bulgaria has 2,500 employees and serves 635,000 customers.