(Alliance News) - Intesa Sanpaolo Spa announced Monday that it has taken over First Bank SA (Romania) from the U.S.-based private investment fund JC Flowers & Co. thereby strengthening its presence in Central and Eastern Europe.

The transaction is expected to close by the first quarter of 2024, pending approval from relevant regulatory authorities.

First Bank, with total assets of about EUR1.5 billion, is a commercial bank with 40 branches in Romania-where Gross Domestic Product growth is expected to exceed 3 percent in the next two years-and focuses on serving SMEs and retail customers. In recent years, First Bank has prioritized investment in digital technology, developing one of the most popular mobile banking applications in the market.

Intesa Sanpaolo is present in the country through Intesa Sanpaolo Bank Romania - part of the International Subsidiary Banks division -, serves about 60,000 customers through 34 branches, and has assets of about EUR1.5 billion.

Marco Elio Rottigni, Chief of the International Subsidiary Banks division, said, "We are pleased to welcome First Bank's employees and customers to the Intesa Sanpaolo Group. This transaction, which doubles our presence in a fast-growing country with strong ties to Italy like Romania, fits well with the group's strategy of seizing value-oriented opportunities while maintaining a focus on organic, profitability-driven growth."

"The expansion in Romania strengthens our position in Central and Eastern Europe and confirms our support for the internationalization of Italian companies; we are really happy to start working with our new colleagues."

Intesa Sanpaolo's stock is up 1.2 percent at EUR2.40 per share.

By Giuseppe Fabio Ciccomascolo, Alliance News senior reporter

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