In a recent development, Hungarian bank OTP is reportedly eyeing a bid to acquire Luminor, a financial institution operating in the Baltic region. This move comes after earlier reports that U.S. private equity firm Blackstone is looking to sell its stake in Luminor.
Sources familiar with the matter disclosed that OTP has submitted a “non-binding offer” for the acquisition. Blackstone, the current majority owner of Luminor Holding with an 80.05 percent stake, is anticipating a sale price of around €1.8 billion.
Luminor, headquartered in Tallinn, Estonia, has a strong presence across the Baltic states, including Latvia and Lithuania. It is the third-largest financial services provider in the region. DNB, a Norwegian financial services group, holds the remaining 19.95 percent stake in Luminor.
If successful, this acquisition would significantly enhance OTP’s footprint in the Baltic region, expanding its reach and market share. The move also aligns with OTP’s strategic growth objectives, which have been increasingly focused on expanding its presence in neighboring markets.
The potential acquisition of Luminor by OTP could bring about substantial changes in the Baltic financial services landscape, potentially reshaping competition and customer offerings in the region. As the deal progresses, market watchers will be keen to see how this development unfolds and its implications for both OTP and the Baltic financial sector as a whole.
(Source: Bloomberg | ERR News)
