Intesa Sanpaolo SpA is in talks to buy First Bank of Romania from US investment fund JC Flowers, sources told Bloomberg on condition of anonymity. Agerpres.

The Italian lender is discussing terms of a deal that could value First Bank at around 200 million euros ($216 million). Negotiations are ongoing and there is no certainty that a deal will be reached, the sources said.

Spokesmen for Intesa, JC Flowers and First Bank declined to comment.

Intesa Sanpaolo SpA, the largest bank in Italy, has a subsidiary in Romania with assets of approximately €1.5 billion and more than 60,000 customers.

JC Flowers acquired First Bank from Piraeus Bank in 2018

The first bank provides a wide range of products and financial services for retail customers, small and medium-sized businesses and large companies. JC Flowers acquired First Bank from Piraeus Bank in 2018. A year later, it acquired a smaller competitor, Leumi, which was incorporated into the First Bank brand.

In January, Bloomberg reported that JC Flowers wanted to sell First Bank and had held preliminary talks with UniCredit SpA, but no deal had been reached. In addition, in July UniCredit decided not to continue negotiations on the acquisition of the Romanian subsidiary OTP Bank Nyrt.

Intesa Sanpaolo SpA is considering smaller acquisitions in the European regions where it operates and in the countries around the Mediterranean Sea in order to strengthen some of its core activities. “While our focus is on organic growth, the bank is poised to benefit from external growth opportunities that may arise. The acquisition should bring synergies, be compatible with our business model and be done at the right price – conditions that we do not see at the moment,” Marco Elio Rottigni, Head of International Subsidiary Banks (ISBD) at Intesa, told Bloomberg.

ISBD aims to increase its share in foreign markets where it is already present by expanding its investment banking, wealth management, private banking and insurance activities. In addition, Intesa can take over portfolios of loans or mortgages to expand its business, Rottigni explained.

“We want to have a stronger position in the CEE (Central and Eastern Europe) countries, where we are already strong. We can also consider expanding to countries around the Mediterranean where Italian companies have strong business relationships. Intesa will continue to focus on supporting the foreign expansion of Italian companies,” added Marco Elio Rottigni.

ISBD operates on three continents through 11 commercial banks in CEE and Egypt, and has an asset management company in China. With a network of nearly 700 branches and approximately 21,000 employees, the company serves seven million customers.