March 10 (Reuters) - Austria's Raiffeisen Bank is closing in on a deal to buy BBVA's Romanian Garanti for about 550 million euros ($640.97 million), Bloomberg News reported on Tuesday citing people
Raiffeisen nears deal for BBVA's Romania unit, sources say
Raiffeisen's Acquisition of BBVA's Romanian Business
By Alexandra Schwarz-Goerlich
Deal Details and Valuation
VIENNA, March 10 (Reuters) - Austria's Raiffeisen Bank is closing in on a deal to buy the Romanian business of BBVA's Garanti unit, two people with knowledge of the situation told Reuters on Tuesday.
The Austrian lender has offered to pay about 1.2 times the book value for that business, implying a price tag of roughly 550 million euros ($639.87 million), Bloomberg News reported earlier in the day.
Market Dynamics and Seller's Advantage
One of the sources said that a price above book value is unavoidable given the limited number of takeover targets on offer.
"It's currently a seller's market," the source said.
Strategic Considerations and Company Statements
Garanti BBVA's Position
In a stock-exchange disclosure, the Istanbul-listed Garanti BBVA said it was evaluating all strategic options for its assets and units and can review offers for a potential transaction, adding that it has not made a final decision.
Comments from BBVA and Raiffeisen
BBVA and Raiffeisen declined to comment.
Implications for Raiffeisen
Significance of the Transaction
The transaction would be the Austrian bank's first significant acquisition in many years.
It would mark a turning point in its strategy after a long period focused on problems in Russia, from which the bank has been under pressure to withdraw due to Western sanctions on Moscow over its invasion of Ukraine.
Raiffeisen's Presence in Romania
Raiffeisen is already active in Romania and is currently the fourth-largest bank there, a spokesperson told Reuters.
CEO's Perspective on Acquisitions
At the end of January, Raiffeisen Bank CEO Johann Strobl said the bank still had "a buffer for acquisitions". He did not comment on speculation about interest in BBVA's Romanian unit, but said the bank viewed several markets as particularly interesting and Romania Garanti was one of them.
Broader Industry Context
Raiffeisen's Financial Performance
Raiffeisen reported a 48% rise in its preliminary 2025 consolidated profit in January, driven by accelerating loan growth.
European Commission's Role in Banking Mergers
The European Commission has been weighing a proposal to make it easier for companies in the region to build scale through cross-border acquisitions in its first overhaul of merger rules in more than two decades.
($1 = 0.8595 euros)
(Reporting by Alexandra Schwarz-Goerlich, Anusha Shah and Jesus Aguado. Writing by Marleen Kaesebier; Editing by Krishna Chandra Eluri, Louise Heavens and Tomasz Janowski)
