In general, however, it is certain that the eventual deal will create a situation of three banking giants of similar caliber with about 18-19% share, which are in competition for the leading position in Bulgaria. In addition, after it, three quarters of the assets in the system will be concentrated in the top 5 players, while all the other 12 banks and 7 branches of foreign institutions will share the remaining quarter.
UBB + Raiffeisen will also rank second in all different segments. In corporate loans (BGN 6.85 billion) and deposits (BGN 7 billion) it will yield slightly by Unicredit Bulbank, and in the retail market it will be behind DSK.
“I am really happy for this second acquisition in Bulgaria within a year. We have positioned ourselves as a strong market player, providing a full range of high quality banking, insurance services, asset management services and leasing. The acquisition of Raiffeisenbank Bulgaria is another proof of our commitment to the Bulgarian market and our support for the Bulgarian economy. We are extremely happy to acquire a high quality business with an excellent reputation and management team. The clear focus on innovation and digitalization, combined with the high rating of customer satisfaction, reflects like a mirror our own strategy “First in a digital way” and will allow us to further expand our business in Bulgaria by strengthening our leadership position in the Bulgarian financial market. . ”
Another big jump
For KBC, this is another major acquisition in Bulgaria, which already positions it firmly in its strategic goal – to be among the top 3 in every market in which it operates. So far, UBB was third in terms of assets, but in a contested race with the aggressively growing Postbank. According to sources from “Capital”, before reaching a deal with Raiffeisen, an option to buy Postbank was considered.
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Petar Andronov, who headed KBC’s Bulgarian business for 13 years, has been a member of its executive committee and CEO of the International Markets business unit since this spring.
Photographer: Tsvetelina Belutova
KBC entered Bulgaria in 2007, acquiring a majority stake in the medium-sized EIBank. Then it bought 75% (48% of the investment fund of Thor Bjorgolfsson Novator and 24% of Svetoslav Bozhilov) for 295 million euros. And in the following years he bought the shares of the other major shareholder – Tsvetelina Borislavova, who held 24%.
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