Who said the month of presents is not a good time for business? Certainly 2014 comes to a happy end and brings a smile upon the face of Transilvania Bank. The acquisition of the year, Transilvania Bank buys Volksbank for 600 million Euro is all around the news. Let’s review the story in a few short lines.
After negotiations that lasted for four months, on December 10th, in a conference room in Marriott Hotel in Bucharest, at the early hour of 5 o’clock, the Romanian bank and the Austrian bankers that helf Volksbank Romania finally reached an agreement. The official pact marks the purchase of Volksbank by Transilvania Bank for the sum of 600 million Euro – according to sources in the financial sphere. This amount represents the agreement to repay financing lines. In exchange, Volksbank “is worth” 1.6 billion Euro: therefore, represents a major gain for Transilvania Bank.
Representatives of the two parties involved stated in conference that the exact transaction cost will only be communicated next year, after all formalities have been accomplished.
This is a once in a lifetime opportunity for Transilvania Bank. For the Austrians, it is a relief, as sustaining the branch in the Romanian Capital City had become too costly and they no longer wished to invest here. As a matter of fact, the Viennese banker Heinrich Pecina was the one to reach out to Transilvania Bank in the summer of 2014. Pecina was the one to mediate transactions and was also present in Bucharest on December 10th to sign the contract.
Volksbank entered the Romanian market in the years 2000. After reaching a climax in real estate in 2008, Volksbank lost ground after the economic crisis. Transilvania Bank was born in Cluj over 20 years ago and has become one of the most reliable and popular banks on the Romanian financial market. The market share is around 10% and the total of assets is 34 billion RON. Acquiring Volksbank is a great plus and marks a successful end of the year for the Transylvanian bank.