OTP Bank In Talks To Buy RBS’ Romanian Unit - Sources

04.29.2011 By Florentina Dragu

Hungary’s largest lender OTP Bank wants to buy the Romanian subsidiary of Royal Bank of Scotland and will make an offer shortly, people close to the negotiations said Friday.

Hungary's largest lender OTP Bank wants to buy the Romanian subsidiary of Royal Bank of Scotland and will make an offer shortly, people close to the negotiations said Friday.

"OTP will come up with a price by mid-May," the mentioned sources told MEDIAFAX.

The Hungarian bank earlier Friday told a news conference in Budapest that OTP is looking to buy a peer in Romania. OTP didn't give any names, but said it wouldn't be MKB Romexterra, the local unit of Hungary's MKB.

"The total assets of our potential purchase target are slightly higher compared to OTP Romania's," said László Wolf, deputy general manager of OTP.

RBS Bank Romania was founded in 1995 and operates 30 branches on the local market.

Royal Bank of Scotland Group plc announced plans to sell its Romanian unit, but reconsidered when it didn't receive an acceptable offer.

In 2010, RBS Bank Romania reported net profit of over 150 million lei (EUR36.8 million), up 15% on the year.

The bank operates 28 branches in 15 Romanian cities.