Telenor’s Serbian subsidiary has gained access to a banking licence by acquiring Belgium KBC bank’s Serbian unit.
Telenor Serbia is buying the bank’s assets, while Societe Generale is taking over the banks former customers, according to a KBC…
Telenor’s Serbian subsidiary has gained access to a banking licence by acquiring Belgium KBC bank’s Serbian unit.
Telenor Serbia is buying the bank’s assets, while Societe Generale is taking over the banks former customers, according to a KBC statement.
Financial details of the deal were not disclosed.
The purchase allows Telenor to push mobile financial services in the country, part of a wider strategy by the Nordic group. It aims to generate global revenue of US$1bn through mobile payments in 2016.
“Among three potential strategic options, we decided to acquire a bank, as this is a solution that best fits our strategy and enables the fastest go-to market approach,” said Ove Fredheim, CEO of Telenor Serbia.
The transaction still needs to be approved by the National bank of Serbia and the Commission for Protection of Competition, but Telenor is confident it will get regulatory consent.
In 2009 the European Commission required KBC to restructure its business in return for state aid in the wake of the financial crisis. As part of this the bancassurer had to re-focus on its core markets and divest a number of businesses in Eastern Europe, including its Serbian unit.
