BNP Paribas has agreed with Rabobank to acquire the latter’s 98.5 per cent stake in Polish bank Gospodarki Żywnościowej, or Bank BGŻ, by valuating the European firm at around €1.0 billion ($1.36 billion).

BNP Paribas has agreed with Rabobank
to acquire the latter’s 98.5 per cent stake in Polish bank Gospodarki
Żywnościowej, or Bank BGZ, by valuating the European firm
at around €1.0 billion ($1.36 billion)

The completion of the transaction is subject to the
execution of final documentation and to the necessary regulatory approvals, a
statement from the banks said today.

“We’re pleased that a strong and renowned bank, BNP Paribas,
will be able to reinforce Bank BGŻ established position as a universal
commercial bank. It was very important for Rabobank to find a respectable
partner, who can further develop Bank BGŻ’s ambitions,” Berry Marttin, member
of the Rabobank executive board, said.

Rabobank has sold other business units. In early 2013, the
European lender sold the bulk of its stake in Netherlands-based asset manager
Robeco to Japanese financial services group,ORIX Corporation;  in late November 2011, Rabobank sold its
majority stake in Switzerland’s
Sarasin & Co to Brazil’s
Safra. Rabobank also put its Indonesia
unit up for sale.

Jean-Laurent Bonnafé, CEO of BNP Paribas Group said the
addition of the Polish bank “constitutes a major step towards attaining a
critical size in Poland.
The transaction will establish the BNP Paribas Group as a reference player in Poland’s
banking sector”.

The transaction is expected to have a minor impact (around
-15 basis points) on BNP Paribas Group’s Basel III Common Equity Tier 1 ratio
and to immediately have an accretive effect on its net income per share (2013
pro-forma).