Italian UniCredit acquires the Romanian subsidiary of Greek Alpha Bank – 04/11/2024 at 5:00 p.m.

The second Italian bank UniCredit has finalized the acquisition of 90.1% of the subsidiary of the Greek bank Alpha Bank in Romania, the two groups announced in a press release on Monday.

UniCredit acquired this majority share in exchange for 9.9% of the share capital of its own Romanian subsidiary and by paying 255 million euros in cash to Alpha Services and Holdings, the parent company of the Greek bank.

Alpha Bank Romania will be merged with UniCredit Bank Romania, creating the third largest banking group by assets in the country, with a combined market share of 12%. The merger is expected to be finalized in the second half of 2025.

This transaction “is part of the strategic partnership between UniCredit and Alpha Services and Holdings”, notes the press release.

Alpha Bank “will maintain its long-standing presence” in Romania, owning 9.9% of the UniCredit subsidiary after the merger is completed, the two groups add.

It is a “decisive step in our strategic partnership with Alpha, which allows us to strengthen our presence” in Romania “for the benefit of our clients and partners,” commented UniCredit CEO Andrea Orcel.

“Romania is of strategic importance for us in this growing region of Eastern Europe,” he added.

At the helm of UniCredit since April 2021, Mr. Orcel had long been content with small-scale mergers and acquisitions, favoring the creation of value due to internal growth.

UniCredit, however, took the markets and the German government by surprise by announcing in September first the acquisition of 9% of its rival Commerzbank, then its increase to 21% of the capital, subject to the required authorizations.

Andrea Orcel makes no secret that he wants to increase this participation, a project which has, however, aroused strong resistance from Berlin and Commerzbank.