French-based Groupama to acquire BT Asigurari

French-based Groupama, a financial group with operations in Europe and Asia, has started exclusive negotiations with Banca Transilvania for the acquisition of BT Asigurari (BT Insurance) according to sources from the market. The transaction could be concluded by the end of the year. BT Asigurari (ranked tenth on the market) was put up for sale several months ago. Apart from Groupama, the shortlist for the takeover included the Austrian group Uniqa and the Dutch group Aegon. Banca Transilvania purchased 10% of the insurance company’s shares from SIF Banat Crisana on Wednesday, as announced by the bank’s CEO, Robert Rekkers (photo) and reached an approximately 90% stake. The value of the transaction stood at 5.65 million euros, with the entire company evaluated at 56.5 million euros. Given that the French will acquire the majority stake, the transaction could be much higher. The deal between Banca Transilvania and Groupama is extremely complex and, apart from the sums paid by the French group, it is also based on a long-term contract between the two parties, which entails the provision of bancassurance services. The French have also asked to use the BT Asigurari name after the acquisition. The transaction is being brokered by investment firm Capital Partners, with the legal side being handled by the Musat & Asociatii (Musat & Partners) law firm, for the seller. BT Asigurari is one of the most dynamic companies on the market, with business worth 60 million euros in 2006, and this year targets 88 million euros.