UniCredit Romania To Merge With Alpha Bank Romania - Quick Facts

(RTTNews) - UniCredit S.p.A and Alpha Services and Holdings S.A. have signed a binding term-sheet for the creation of a strategic partnership in Romania and Greece. The parties have agreed the key economic terms for the merger of UniCredit Romania with Alpha Bank Romania S.A. Upon completion, Alpha Bank is expected to: retain 9.9% of the combined entity share capital and; receive a cash consideration of 300 million euros.

UniCredit and Alpha Services and Holdings also announced the establishment of a commercial partnership framework in Greece to distribute UniCredit's asset management and unit-linked products to Alpha Bank's 3.5 million clients and creation of a joint venture in pension-saving products with UniCredit becoming a 51% shareholder in AlphaLife.

UniCredit also has submitted an offer to the Hellenic Financial Stability Fund to purchase, in accordance with the HFSF divestment strategy and procedures, all the shares the HFSF currently holds in Alpha, equal to 9%. The deal will have a negligible impact on UniCredit's CET1 ratio.

UniCredit noted that the merger will enable to enhance its presence in Romania. The Romanian merger will have an impact on UniCredit's CET1 ratio of around 15 basis points and, together with the commercial partnership centred around UniCredit's factories, is expected to add, on a run rate basis, above 100 million euros in incremental net profit to the company.