UniCredit and Alpha Services announce merger to create third largest Romanian bank

UniCredit and Alpha Services and Holdings have cemented their collaboration with a merger of their Romanian subsidiaries. This strategic move will establish the third-largest bank in Romania by total assets, a testament to Romania’s growing financial market. UniCredit Romania and Alpha Bank Romania, both recognized players in the corporate and retail sectors, will combine their strengths. Post-merger, Alpha Bank will retain a 9.9% stake in the new entity and also receive a cash consideration of Euro 300m, with potential adjustments post due diligence.

UniCredit stated: “The merger will grant customers of Alpha Bank Romania access to an enlarged range of services and products; and both parties will ensure continuity and quality of service to their clients throughout the period of transition.”

Expanding Commercial Partnership in Greece

UniCredit is setting its sights on Greece, establishing a commercial partnership framework to offer its asset management and unit-linked products to Alpha Bank’s extensive 3.5 million client base. Moreover, a joint venture has been created in the pension-saving products sector, with UniCredit taking the majority share of 51% in AlphaLife.

Acquisition Stake in Alpha by UniCredit

In a strategic move, UniCredit has made a formal offer to the Hellenic Financial Stability Fund (HFSF) to acquire all the shares it holds in Alpha Services and Holdings, equaling a 9% stake. This acquisition, if not completed with HFSF, will see UniCredit commit to a market purchase of shares equating to 5% or a pre-agreed amount over 24 months.

Benefits of the Strategic Partnership

The new partnership signals a reinforced presence of UniCredit in Romania, tapping into its high growth potential. Additionally, the partnership aids UniCredit’s expansion into Greece, a nation showcasing robust growth potential after its structural reforms. Alpha Bank, on the other hand, stands to benefit from an augmented product offering, potentially achieving its business plan targets at an accelerated pace.