Intesa Sanpaolo SpA, which has been in talks for several months to acquire First Bank in Romania from the American investment fund JC Flowers, has ended the negotiations.

Commenting on Intesa Sanpaolo Group’s share purchase agreement for the purchase of 99.98% of First Bank SA from the American private equity fund JC Flowers & Co., Marco Elio Rottigni, Head of Subsidiary and International Banking at Intesa Sanpaolo said:

“We welcome the employees and customers of First Bank to the Intesa Sanpaolo Group. This transaction doubles our presence in Romania, a country of significant economic growth with strong ties to Italy, and is in line with our strategy to take advantage of valuable opportunities while maintaining a focus on organic growth and improving profitability. The expansion in Romania strengthens our position as a reliable bank in Central and Eastern Europe and actively supports the internationalization of Italian companies. We look forward to working with our new colleagues soon.”

According to Bloomberg, the amount of the deal will be about 200 million euros ($216 million).

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

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.

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 we focus on organic growth, the bank is ready 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 Intesa’s International Subsidiary Banks (ISBD), told Bloomberg.

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.