Romanian lenders Banca Transilvania, CEC Bank and Volksbank Romania may soon become candidates for takeover or state-led privatization, according to a banking sector report.Despite little to no mergers and acquisitions activity in Romania in 2010 and the first half of 2011, „Romania looks overbanked in terms of banking sector infrastructure and the number of banks operating in the country,” the report notes.
As such, many smaller local-owned banks are expected to report losses in 2011, which makes them ripe for takeover or recapitalization, according to the report, ISI said. Possible targets for mergers and acquisitions, in Raiffeisen’s view, include Banca Transilvania, CEC and Volksbank Romania.
Banca Transilvania, with assets worth some EUR5 billion, lacks a strategic investor. Bank of Cyprus holds a 10% stake here, while the European Bank for Reconstruction and Development and the International Finance Corporation hold 18%.
State-owned CEC has assets worth EUR5.1 billion, and it has been a candidate for takeover for some years now, according to the Raiffeisen analysts. ISI said. The state has repositioned the bank and injected capital into it.
Volksbank Romania’s fate is uncertain. Austrian group Volksbank was unable to sell the Romania unit when it sold the Central and Eastern Europe operations to Sberbank.
