Competition Council analyzes takeover of control over Victoriabank

Chisinau, 11 November /MOLDPRES/- The Competition Council analyzes a notification submitted by the European Bank for Reconstruction and Development (EBRD) and the bank “Transilvania” on control over “Victoriabank” through VB Investment Holding, according to sources in the Competition Council.

The competition authority will analyze the notified operation in order to set the compatibility of the merger with the normal competitive environment. The Competition Council announced it is interested in “getting comments and views from third economic agents on how the economic concentration affects or may affect competition” on the banking market.

The EBRD has recently said that together with the bank “Transilvania” from Romania would become the majority shareholders of “Victoriabank”, the third largest bank in Moldova. This would be the first time since 2007, when a foreign investor will enter the Moldovan market, according to a press release by EBRD. Last year, the European bank, a minority shareholder in Victoriabank, increased its stake to 27.5 per cent of the shares in an attempt to restore effective corporate governance and attract a strong investor to Victoriabank.

The bank Transilvania intends to acquire an initial stake of over 39 per cent of Victoriabank’s capital, and for this it must get permission for investment of the National Bank of Romania and the National Bank of Moldova (BNM). BNM confirmed it is examining the Romanian bank’s request and the bank “Transilvania” and EBRD will jointly hold the majority stake and will have the obligation under the law to come up with a public offer to purchase the other shares at Victoriabank.

Victoriabank has almost 30 years of activity in Moldova, 540,000 customers, 1,400 employees and about 100 offices. In June, the bank had the highest level of deposits in total assets in the entire Moldovan market of 80 per cent. It holds a 17-per cent-stake in the card market, as a number of electronic payment instruments and 37 per cent of turnover in merchant card.

 (Reporter V. Bercu, editor L. Alcază)