Hungary's OTP to sell Slovakian subsidiary to KBC
OTP Bank will sell its 99.44% stake in OTP Banka Slovensko a.s.to KBC Bank NV, subject to the approval of the National Bank of Slovakia (NBS), the National Bank of Belgium (NBB), the European Central Bank (ECB) and the Slovakian competition authority. OTP expects to complete the deal by the second or third quarter of 2020.
One the deal is approved, OTP Banka Slovensko will become a subsidiary of KBC Bank and will then be merged with its local unit ČSOB Bank. No layoffs are planned, and the OTP Banka Slovensko brand name will be kept until the merger is complete.
OTP has been unable to reach the desired market share in Slovakia over the past 20 years, President-CEO Sándor Csányi said on the sale. "This allows the OTP group to focus on markets where it can secure a significant market share," Csányi said.
OTP Banka Slovensko is a universal bank in Slovakia. OTP acquired a majority stake in the bank in April 2002. It has a 1.69% market share and 58 branches across Slovakia serving 176,000 retail customers and nearly 15,000 corporate customers and SMEs.
See why OTP has sold its Slovakian operation in Portfolio's flash analysis below:
