Sovcombank ICB LLC signed a binding agreement to acquire 100% of the shares in CJSC GE Money Bank (GE Money Bank Russia), according to Sovcombank's press release.
Completion of the transaction is directly contingent on the corresponding approvals of Russia's Federal Antimonopoly Service and the Central Bank of the Russian Federation which Sovcombank expects to secure within several months.
The transaction value has not been disclosed.
The acquisition of CJSC GE Money Bank will complete Sovcombank's transformation from a multiregional bank into a federal financial institution. With this acquisition, Sovcombank will add many new customers to its portfolio and have access to GE Money Bank's advanced banking technologies.
All GE Money Bank outlets will be rebranded to operate under Sovcombank's single brand. No changes in the positioning of Sovcombank are expected.
Investment Commercial Bank Sovcombank LLC (Sovcombank ICB LLC) was established in 1990. The bank's mission is develop a federal bank for middle-aged and senior citizen. The Bank's PoS network exceeds 2,000 offices in 35 regions of Russia.
GE Money Bank is the Russian unit of financial company General Electric Company - GE Capital. As of July 1, 2013, the bank's assets totaled RUB 27.7 billion, equity capital reaching RUB 8.7 billion.