Garanti BBVA has agreed to sell its entire Romanian business to Austria’s Raiffeisen Bank for €591 million, marking a strategic reshaping of both lenders’ positions in eastern Europe.

The Turkish lender said on 28 March its board had approved the share purchase agreement, covering full stakes in Garanti Bank S.A. and leasing firm Motoractive IFN S.A. The deal remains subject to regulatory approvals and is expected to complete in the fourth quarter of 2026.

BBVA, which owns a majority stake in Garanti, said the transaction would deliver a net positive impact of around 10 basis points on its common equity tier-1 ratio and add €112 million to its income statement. The Romanian unit accounted for less than 5 per cent of Garanti BBVA’s total assets, with approximately €4 billion on its balance sheet at the end of 2025.

The acquisition will strengthen Raiffeisen Bank International’s position in Romania, making it the country’s third-largest lender by assets once completed. The transaction includes the Motoractive leasing business, expanding Raiffeisen’s presence in consumer and corporate financing.

According to Bloomberg, Raiffeisen expects its CET1 ratio to decline by about 60 basis points as a result of the purchase, reflecting the capital impact of the acquisition. Johann Strobl, outgoing chief executive of Raiffeisen Bank International, said in a statement that the group “has a strong capital position and is pursuing growth organically and through acquisitions in its core markets”.

The move comes as Raiffeisen seeks to rebalance its operations in central and eastern Europe following prolonged challenges linked to its Russian business and legal disputes in Poland. The lender has been under pressure to offset losses and reposition itself in more stable markets within the region.

Romania has emerged as a focal point for banking consolidation, with lenders seeking scale in a fragmented market that generated around 16 billion lei in profit last year. Garanti BBVA held roughly a 2 per cent market share, ranking among the country’s mid-tier banks.

The news of BBVA’s takeover approach emerged earlier this month, and is consistent with a broader surge in European banking M&A activity. European banking deals rose from 183 in 2024 to 219 in 2025, with deal value more than quadrupling from $17.5 billion to $73.5 billion over the same period, according to EY

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