Approval of Acquisition by Bulgarian-American Credit Bank AD
Today, on July 24th, the Commission for Protection of Competition published a decision approving the concentration between companies, which will be carried out through the acquisition by “Bulgarian-American Credit Bank” AD of 99.94% of the shares of “TOKUDA BANK” AD (direct sole control over “TOKUDA BANK” AD). It is worth noting that on April 16th, BAKB, as the buyer, and Tokushukai Inc. (TOKUSHUKAI INCORPORATED) from Japan, as the seller, reached an agreement for BAKB to acquire the seller’s 99.94% stake in the share capital of “TOKUDA BANK” AD, with the deal subject to certain conditions.
Completion of Regulatory Approvals for Bank Acquisition
It is important to ensure that all necessary regulatory approvals are obtained from the competent authorities before finalizing the deal. One of these approvals is the announcement from the Competition Commission. Currently, prior to the completion of the transaction, BAKB ranks among the top 10 banks out of a total of 19 banks in Bulgaria: 10th in terms of deposits and total loan size, 9th in terms of loans to individuals and consumer loans, and 8th in terms of mortgage loans. In April 2024, BAKR – Credit Rating Agency AD (BAKR) once again upgraded its long-term financial strength rating for Bulgaria.
Positive Outlook for Trans-American Credit Bank
The credit rating agency has upgraded Trans-American Credit Bank from BBB to BBB+, changing the outlook from “positive” to “stable”. The agency also confirmed the long-term national scale rating at AAA (BG) with a “stable” outlook, and the short-term national scale rating at A-2 (BG).
The acquisition deal of Tokuda Bank AD will be finalized upon approval from the sector regulator BNВ in close cooperation with the ECB.
