OTP Bank has announced that it did not submit an improved financial offer for the acquisition of a 69.9% stake in Romanian Casa de Economii si Consemnatiuni (CEC) by today’s deadline. OTP Bank has stated that it will further concentrate on further development of its Romanian subsidiary, OTP Bank Romania that it bought in 2004.
Additionally, according to the statement from Romanian Finance Minister the privatisation process of CEC Bank has been postponed for two years.
Our view: We view the news as positive for OTP Bank. Despite CEC Bank being a good strategic feat for the regional expansion of the bank, the ongoing dynamic organic expansion in Romania is less costly in our opinion.