The deal also includes payment of PLN50m ($11.9m) for digitalization investment projects.
Under the deal, BNP will acquire core bank operations of Raiffeisen Bank Polska excluding the foreign currency retail mortgage loan portfolio and limited amount of other assets.
Corporate and retail gross loans of the core bank are valued at PLN19bn (€4.5bn), and customer deposits at PLN34bn (€8.1bn) by the end of 2017.
According to BNP Paribas, the combined bank would have achieved an over 6% market share in loans and deposits at year-end 2017.
Subject to regulatory approvals, the deal is expected to be complete in the fourth quarter of this year.
Once the deal concludes, the acquired business will be combined with BNP’s Polish subsidiary BGZ BNP Paribas.
BGZ BNPP CEO Przemek Gdanski said: “I believe that this transaction will strengthen our position amongst the largest banks in Poland bringing us much closer to the top 5. We are glad to become with this transaction an active participant in the consolidation of the Polish banking sector.”
Raiffeisen Bank Polska CEO Piotr Czarnecki said: “The teams of Raiffeisen Bank Polska can be excited by the perspective of joining BNP Paribas, one of the leading banking groups in Europe. I trust that in recent times, we have demonstrated our capacity to adapt while continuing to service efficiently our clients.”
BGZ BNP Paribas, which is listed on the Warsaw Stock Exchange, provides savings and investments products to individual clients. It also offers a range of loans, including mortgage and consumer.
With operations in 73 countries, BNP Paribas operates domestic markets and international financial services unit, and corporate and institutional banking unit that serves two client franchises such as corporate clients and institutional investors.
Image: BNP Paribas to acquire core banking operations of Raiffeisen Bank Polska. Photo: courtesy of BNP Paribas.
