Belgian KBC bought the business of Raiffeisen Bank International

KBC Bank (KBC) and Austria's Raiffeisen Bank International (RBI) have announced that they have reached an agreement with a Belgian-based banking group to acquire 100% of the shares of Raiffeisen (Bulgaria) EAD, which conducts banking operations on the side of RBI.

The deal also includes Raiffeisen Leasing Bulgaria, Raiffeisen Asset Management (Bulgaria), Raiffeisen Insurance Broker (serving corporate and leasing clients of Raiffeisen (Bulgaria), and Raiffeisen Service. All these companies are entirely owned by Raiffeisen (Bulgaria).

According to both parties, this reflects the quality of the Raiffeisen franchise and the potential for synergies from which the buyer expects tens of millions of euros in benefits in the coming years.

The completion of the transaction is subject to approval by regulatory authorities and is expected to be the case by mid-2022.

Raiffeisen has been doing business in Bulgaria since 1994, offering a wide range of services and is considered to be sixth in the banking market, controlling 7.9% of assets and 8.4% of loans. The network of branches includes 122 sites plus a network of mobile banking consultants, partners, credit intermediaries, staff of about 2,500 people and 635,000 customers.

KBC Group has been in Bulgaria since 2007, and since 2009 the country has been a key market for the banking group. Today they own United Bulgarian Bank, DZI, UBB Interlease, UBB Pension Insurance, UBB Asset Management, UBB Factoring, UBB Insurance Broker and KBC Group Bulgaria Branch.