The announcement made on Monday by banking groups UniCredit Italy and Alpha Bank Greece regarding the merger of branches in Romania surprised everyone. Even the employees of the two banks did not know about the merger, the internal letters came about two hours after the press releases appeared in the press. Only a few people at the top of both banks knew about the operation. And the head of the National Bank of Romania, Mugur Iserescu, who was informed about two weeks ago that the deal was done and that the transaction would be completed in a very short time.

UniCredit Bank Romania had (according to BNR) assets of more than 60.4 billion lei and a market share of 8.6%, while Alpha Bank Romania had assets of 21.13 billion lei and a marginal market share of more than 3%.

Orcel, UniCredit: Thanks to the merger, we have demonstrated that we are capable of reaching critical mass

UniCredit has long sought to make acquisitions, and expansion has been part of the bank’s strategy. “Monday’s announcement is a demonstration of this interest in expansion. The merger of two banks, UniCredit Romania and Alpha Bank Romania, both of which have strong anchors in the corporate and retail segments, brings an additional focus on driving growth in Romania, offering additional benefits to our client bases,” said Andrea Orcel, CEO of UniCredit Group at online meetings with media representatives and financial analysts.

For Alpha Bank, the merger means access to the other 12 markets where UniCredit operates, and for UniCredit it means access to the Greek market for UniCredit’s services and products, he added.

When asked if other takeovers of this nature were on the way, Orsel said there were no such discussions at the moment, but UniCredit was closely following developments in the banking sector and if it saw an acquisition opportunity that would add value to the Italian group, it would not hesitate to step in.

The transaction is just beginning. “If I were to be conservative, I would say we don’t expect it to close before the second half of 2024. If it closes early, that’s great. But we don’t want to rush; there are many details to analyze. But I would like to reiterate the fact that the decision to merge our subsidiary in Romania is in our long-term business interests and brings maximum value to our shareholders,” Orcel said.

As you know, our goal for Romania was to maximize our value. Thanks to the merger of our subsidiary company in the country, we have shown that we are able to reach a critical size and strengthen the status of the united entity, believes the general director of the Italian banking group.

Psaltis, CEO of Alpha Services and Holdings: Our opinion about Romania has not changed: it is a fast-growing economy, it is an attractive banking market

For Alpha Bank, this transaction clearly advances our strategic goals, said Vassilios Psaltis, CEO of Alpha Services and Holdings. “The decision was made to do what we believe is best for our long-term business interests. The deal announced jointly with UniCredit is not only an extension of our strategy, but also has a much broader, long-term package. UniCredit has strong know-how, extensive experience and a large network of divisions that will enhance the services we offer”

We are working closely on this transaction but do not want to divulge all the details. We’ll keep you updated as we get closer to closing the deal, said Psaltis, who added, “This is the best alliance we could think of and we believe it’s the best use of minimal venture capital.”

Our opinion about Romania has not changed: it is a fast-growing economy, it is an attractive banking market. The fact is that time is passing and we understand that we need to scale in order to obtain adequate profitability. The fact that UniCredit was interested in this accelerates the achievement of our goals in Romania, believes the CEO of the Greek banking group.

What Alfa Bank customers should know after the merger with UniCredit

Until the complete closure of the business (most likely in the second half of 2024, if not even in 2025, given that the approvals of the authorities (BNR, Competition Council) are still required), nothing will happen.

The concluded credit agreements remain unchanged, and the conditions do not change, sources in the banking sector told HotNews.

Once the deal is fully completed, customers will most likely receive an individual notification of a change in the organization they have signed a loan with, not necessarily a change in the terms of the loan. In other words, interest and other bank fees will most likely remain in the contract.

HotNews has sent questions on the subject to the banking groups that signed the agreement, but we have not received official responses at the time of writing.