BNP Paribas takes stake in Russian bank

28th July 2004, Comments 0 comments

PARIS, July 27 (AFP) - French bank BNP Paribas has agreed to acquire a stake of just below 50 percent in Russian Standard Bank, the leading consumer credit bank in Russia, through its Russian unit Cetelem.

PARIS, July 27 (AFP) - French bank BNP Paribas has agreed to acquire a stake of just below 50 percent in Russian Standard Bank, the leading consumer credit bank in Russia, through its Russian unit Cetelem.

An industry source said the deal values RSB at "about USD 600 million (EUR 497.1 million)."

BNP Paribas said Cetelem will acquire 50 percent in the holding company which owns 93.5 percent of RSB.

The World Bank's private finance arm International Finance Corp owns a further 6.42 percent in the bank.

The acquisition will be earnings accretive from "year one," the company said.

BNP said "it is expected that Cetelem's stake could rise subsequently depending on the future development of the bank."

Further tie-ups between the banks will be pursued, in what BNP called "one of the European markets with the highest consumer growth potential." It added that the acquisition was expected to close by the end of the year.

© AFP

Subject: French news

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