Russia’s Sberbank is set to acquire the Eastern European arm of Oesterreichische Volksbanken for nearly €500-700 billion, Reuters reports. The deal will not include Volksbanken International’s (VBI) Romanian business.
Volksbanken has a 51% stake in VBI, while France’s Banque Populaire Caisse d’Epargne and Germany’s DZ Bank/WGZ Bank each own 24.5%. Volksbanken, which originally expected to raise as much as €1.8 billion with the VBI sale, will use the proceeds to repay tranches of €300 million due in 2014 and €400 million due in 2018.
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