June 24 (SeeNews) - Romania's competition authority said on Monday that it has approved the takeover of the subsidiary of Israel's Bank Leumi in Romania by First Bank, formerly known as Piraeus Bank Romania.
"Following a review of the transaction, the Competition Council found that it does not raise significant obstacles to effective competition in the market, in particular by establishing or strengthening of a dominant position," the anti-trust body said in a statement.
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In April, First Bank said it plans to acquire 99.9235% of Bank Leumi Romania for an undisclosed price.
The acquisition of Bank Leumi Romania is part of First Bank’s strategy to increase and consolidate its presence in Romania, aiming to become a strong player on the local market, First Bank said at the time.
The deal must also be approved by Romania's central bank.
Bank Leumi tried to sell the Romanian subsidiary last year to British investment fund Argo Group Limited but failed to do so as it was unable to obtain the necessary regulatory permits.
Bank Leumi Romania was opened in 2006 and operates a network of 15 units in 12 Romanian cities, employing 200. Its assets amounted to 250 million euro ($282.5 million) at the end of 2018, while deposits totalled 150 million euro.
Greece's Piraeus Bank sold its Romanian subsidiary to J.C. Flowers & Co. in June 2018, who changed the bank's name to First Bank in September 2018.
($= 0.8849 euro)
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