The transaction is still subject to regulatory approval from the National Bank of Slovakia (NBS) and to the authorisation of the National Bank of Belgium (NBB), the European Central Bank (ECB) and the Antimonopoly Office of the Slovak Republic. The parties involved in the transaction expect the deal to be finalised mid-2020 (in the second or third quarter).
After obtaining the necessary regulatory approvals, KBC Bank will become the new parent company of OTP Banka Slovensko. The future merged entity will substantially strengthen CSOB's bank-insurance franchise in Slovakia and enhance its cross-selling potential with CSOB Poistovna, CSOB Leasing and CSOB Asset Management.
The Belgian financial group KBC stated:
"The next logical step is the legal and operational merger of CSOB Bank and OTP Banka Slovensko, which will further consolidate CSOB's current position of fourth on the Slovakian banking market in terms of assets, with a market share of approximately 12.6%. KBC believes in the positive impact of cooperation and looks forward to welcoming OTP Banka Slovensko's employees into the KBC and CSOB family when the transaction closes. OTB Banka Slovensko's brand name will remain in place for a certain period going forward to ensure a seamless transition for customers and staff until the merger is completed.
In the meantime, OTP Banka Slovensko, with the full support of CSOB, will continue to honour its commitments to the market and to provide professional service of the highest level to all its customers, who will not have to take any action as a result of the transaction"