Austria's Raiffeisen to buy BBVA's Romania unit for $680 million (updated)
28/03/2026 01:59
Adds comment from CEO, paragraphs 3-4 March 28 (Reuters) - Austria's Raiffeisen Bank RBIV.VI said on Saturday it would buy Garanti BBVA's GARAN.IS Romanian business for 591 million euros ($680 million), its first significant acquisition in recent years. The deal marks a turning point for Raiffeisen, which has long been under pressure to withdraw from Russia due to its invasion of Ukraine and the imposition of Western sanctions on Moscow. Raiffeisen's CEO Johann Strobl said his bank has a strong capital base and is pursuing both organic growth and acquisitions in its core markets. "This transaction is a significant strategic step in one of the most attractive banking markets in Central and Eastern Europe, a country we know very well," he said in a statement. Raiffeisen said the acquisition should make it the third-largest bank in the Romanian banking market by total assets. Raiffeisen expects to close the deal in the fourth quarter. It plans to integrate the business with its existing Romanian operations. Istanbul-listed Garanti is a majority-owned unit of Spain's BBVA BBVA.MC, which estimates the transaction will have a net positive impact of around 10 basis points on its CET1 ratio and 112 million euros on the group's income statement. Raiffeisen said the transaction is expected to have around a minus 60 basis point impact on its CET1 ratio. ($1 = 0.8690 euros) (Reporting by Fabiola Arámburo in Mexico City; Editing by William Mallard and Edwina Gibbs) ((Fabiola.Solano@thomsonreuters.com))