French Societe Generale has been trading its banking business in Poland for sale. Its branch in the euro-bank will buy Bank Millenium at 1.83 billion zlotys (US $ 484 million), a buyer added, Reuters said.
Societe Generale also leaves Poland
The prospectus is the Portuguese Millennium and the local Alior Bank
The deal is part of the plans of the French banking group to release less important assets in order to focus on its core business. This strengthens the consolidation trend of the Polish banking sector, which has accelerated in recent years.
Societe Generale sells most of its business to Central and Eastern Europe and has already dealt with its banks in Croatia, Bulgaria and Albania. The buyer is the largest OTP bank in Hungary (the owner of DSK Bank).
Societe Generale leaves Bulgaria, the buyer is the owner of DSK
The deal is almost completed, and negotiations with BNB are already taking place, Reuters said
The Euro Bank transaction will bring Societe Generale's risk-weighted assets to EUR 2 billion and improve equity capital by 8 basis points, said a French company.
Despite the sale, Societe Generale has not been completely removed from Poland. It will continue to provide corporate and investment banking services in the country and will maintain its presence in various other activities.
Société Générale is a potential buyer for your bank in Poland
Another Polish banking sector is being consolidated
It is expected that the deal will be completed in the first half of 2019 and will be approved by the Polish regulators.
The sale of the bank has been under discussion since summer, the main reason for the growing competitive pressure, and the potential buyers were Santander, Credit Agricole and Bank Millenium.
Raiffeisen Bank sells its core business in Poland
The Austrian group is relieved of the troubled operations
Buyer Bank Millenium, part of its equity capital, is one of the largest banks in Poland with assets of 71.14 billion zlotys (18.76 billion dollars). He does not intend to issue new shares to finance the transaction.
Euro Bank is the 17th largest bank in Poland with assets of PLN 14 billion (US $ 3.7 billion) and is more than 20 times smaller than the largest bank in the country's PKO BP. Last year it earned a net profit of PLN 103 million (US $ 27.16 million).