BNP Paribas is set to make major gains in Poland with the acquisition of Raiffeisen Bank International (RBI) Polish arm for €775mn.
RBI, the country's tenth largest lender, will be merged with BNP's Polish subsidiary - BGZ BNP Paribas - to consolidate BNP's standing as the sixth-biggest financial institution in the European Union's largest eastern economy.
According to BNP Paribas' statement, the transaction will also enhance the position of all its subsidiaries operating in Poland (BNP Paribas Securities Services, BNP Paribas Leasing Solutions, BNP Paribas Cardif, Arval, …) in accordance with the Group's integrated model.
"Raiffeisen Bank is one of the pioneers of modern banking in Poland," said Przemek Gdanski, CEO of BGZ BNPP. "I am glad that we will join forces and experiences, building an inspiring organisation that is open to development and collaboration. In many business areas, we will become an undisputed market leader."
Piotr Czarnecki, CEO of Raiffeisen Bank Polska, added: "The teams of Raiffeisen Bank Polska can be excited by the perspective of joining BNP Paribas, one of the leading banking groups in Europe.
"The global reach of BNP Paribas and its ambition on the Polish market is certainly good news for our clients and its interest in us offers a fantastic recognition of the quality of our franchise."
The transaction in subject to regulatory approval and is set to be completed in the fourth quarter of 2018.