Austria-based Raiffeisen Bank International
(Raiffeisen) has acquired a 70% stake in Polbank, the Polish
subsidiary of Greek bank Eurobank EFG.

In December, RBI reported that three
major European banks, France’s BNP Paribas, Italian lender Intesa
Sanpaolo and Raiffeisen were bidding for Polbank.

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Raiffeisen will pay €490m ($668m) for the
majority stake. It will not require to raise new capital for the
deal, with a targeted closure date set for the fourth quarter of
2011 or early 2012.

Eurobank will retain a 30% stake of
Polbank.

Polbank was established in 2006 and is
the eighth largest retail bank in Poland, with a 4.4% retail
lending market share and 335 branches.

Raiffeisen’s Polish subsidiary operates 123
branches in the country.

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Raiffeisen said that the combination of
Polbank and Raiffeisen’s Polish subsidiary will become
the sixth largest bank in Poland in terms of assets and
the fourth biggest in terms of customer loans, taking customer
numbers to over 1m.

Polbank currently has about 800,000 customers
and is expected to become a licensed Polish bank.

The chief executive of Raiffeisen, Herbert
Stepic, said:

“With its clear focus on retail banking,
Polbank is an ideal complement to Raiffeisen Bank Polska. We are
creating a broad basis to develop successfully in one of the most
solid and strongly growing economies in Central and Eastern
Europe.”

Raiffeisen had assets of €6.5bn in Poland at
the end of September 2010.

Raiffeisen awaits regulatory approval
 for the deal from  authorities in Poland, Greece and the
EU.