Сделки за финансов контрол, извършени от Обединена българска банка
Financial Control Transactions Carried Out by United Bulgarian Bank

Author(s): Simeon Barev
Subject(s): Economy, Business Economy / Management, Financial Markets, Socio-Economic Research
Published by: Университет за национално и световно стопанство (УНСС)
Keywords: UBB; consolidation; stability; financial products; transactions
Summary/Abstract: United Bulgarian Bank (UBB) was established on September 30, 1992 through the merger of 22 regional commercial banks, which was the first large-scale consolidation project in the Bulgarian banking sector. The main motives for the merger included stabilization of the industry, optimization of resources and expansion of the client base. The establishment of UBB enabled better competitiveness compared to international banks. In 1997, UBB was privatized by a consortium including the European Bank for Reconstruction and Development (EBRD), Bulbank and the financial company Oppenheimer, making it the first privatized state-owned bank in Bulgaria. This privatization was an important step in attracting foreign investment and economic stability. On July 20, 2000, the National Bank of Greece (NBG) acquired a majority stake in UBB, and in 2002 it purchased the remaining 10% from EBRD, securing full control over the bank. NBG applies its own management standards, which leads to the optimization of operations. In 2017, KBC Group acquired UBB from NBG for EUR 610 million, with the aim of strengthening its presence on the Bulgarian market and expanding the financial services offered. Following the acquisition, UBB received the highest credit rating in Bulgaria from Fitch – ‘A-‘, confirming its financial stability. The integration into KBC Group allows UBB to expand its distribution network and offer the full range of financial services, including insurance, leasing and asset management. In the summer of 2022, KBC Group acquired Raiffeisenbank International’s business in Bulgaria for over EUR 1 billion, after which the bank was renamed KBC Bank Bulgaria and later UBB. UBB has several subsidiaries in Bulgaria, including DZI (insurance), UBB Asset Management (investment products), UBB Factoring (factoring services) and Interlease (leasing services). These subsidiaries allow UBB to offer a variety of financial services and establish it as a major player in the Bulgarian financial market. Historically, UBB has not carried out significant spinoffs or divestitures, but has instead focused on consolidation and integration following acquisitions by KBC Group.

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