Bulgaria: Hungarian OTP takes over the banking, leasing and life insurance business from Societe Generale

The sale of the French Societe Generale banking group's Bulgarian subsidiary, SG Expressbank - including the leasing, factoring and life insurance subsidiaries -, to Hungarian OTP Bank was finalized, according to an OTP statement on 16 January.

According to Bulgarian media, the operation was closed for a total consideration of about EUR 511 million, but none of the two financial actors involved has confirmed the figure.

SG Expressbank was Bulgaria's seventh-largest and operated both in the retail and corporate segments of the market. AS a result of the acquisition, OTP Group would further strengthen its market position in Bulgaria, the Hungarian group said.

In terms of assets, Societe Generale Expressbank was Bulgaria's seventh-largest with 6.67 billion leva at the end of June and Banka DSK, OTP Bank's subsidiary in Bulgaria, was second with 12.49 billion leva. The merged entity would rival UniCredit Bulbank, which had assets of 18.63 billion leva, for the top position in Bulgaria's banking system, The Sofia Globe wrote.

SOGELIFE Bulgaria wrote in 2017 GWP worth EUR 8.35 million, 5.5% up y-o-y, holding a share of 3.6% of the local life insurance market and ranking 8th.

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