KBC Buys Raiffeisen Unit in Record $1.2 Billion Bulgarian Deal
- KBC to boost market share to 18%, near leaders UniCredit, OTP
- Raiffeisen is exiting Bulgaria to focus on bigger markets
Photographer: Oliver Bunic/Bloomberg
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KBC Group NV agreed to buy Raiffeisen Bank International AG’s Bulgarian operations in a 1.02 billion euros ($1.16 million) deal that will allow it to take on market leaders in the quickly growing, foreign-lender dominated market.
The biggest-ever banking transaction in Bulgaria will allow the Belgian lender to raise its market share in assets to 18% from 10% -- within touching distance of leaders UniCredit SpA and OTP Bank Nyrt. The deal includes Raiffeisen’s leasing arm, asset management and insurance brokerage businesses in the Balkan country on track to adopt the euro in a as little as 14 months.