Russia’s Promsvyazbank said on Friday that it has acquired its competitor SMP Bank for an undisclosed sum, the latest banking industry tie-up following the Bank of Russia’s acquisition of Otkritie last week.
Promsvyazbank stated in a statement that the transaction comprised SMP’s subsidiaries, MOSOBLBANK, and the SMP-Insurance factoring and leasing enterprises.
Since being bailed out by the central bank in 2017, Promsvyazbank, one of Russia’s 13 “systemically important credit institutions,” has concentrated on state personnel and the defense sector.
In recent months, the bank has been aggressively growing in the four Ukrainian areas that Russia officially annexed in September, following referendums that Ukraine and Western nations opposed.
This year, Promsvyazbank was sanctioned by the West in response to Russia’s activities in Ukraine.
The Rotenberg family owns the majority of SMP Bank, which was sanctioned by the US in 2014. Arkady and Boris Rotenberg, according to Washington, have intimate links to President Vladimir Putin.
Source – Reuters
