Bulgarian central bank approves Fibank deal to buy MKB Unionbank

First Investment Bank AD

18/02/2014 12:43

SOFIA, Feb 18 (Reuters) - Bulgaria's central bank has given First Investment Bank (Fibank)  5F4.BB  the green light to buy smaller rival MKB Unionbank. Fibank is the Balkan country's third-largest lender in terms of assets and one of the few banks that are not foreign-owned. Last August it said it had agreed to buy MKB Unionbank from Germany's Bayerische Landesbank (BayernLB). However the deal was subject to central bank approval.  ID:nL6N0GG18J   In 2012, the European Commission had ordered BayernLB to restructure and sell some businesses as a precondition for approving state aid for the German regional lender. BayernLB ran into trouble in 2008 after risky investments turned sour.        Fibank's assets stood at 7.45 billion levs ($5.22 billion) at the end of 2013 and MKB Unionbank's total assets amounted to 1.45 billion levs, data showed. The central bank said the approval can be contested within 14 days. ($1 = 1.4274 Bulgarian levs) (Reporting by Angel Krasimirov; Editing by Pravin Char) ((angel.krasimirov@thomsonreuters.com)(+359 887 988 196)(Reuters Messaging: Reuters Messaging: angel.krasimirov.thomsonreuters.com@reuters.net)) Keywords: BULGARIA BANKS/FIBANK