Credit Agricole's Ukrainian Subsidiary Emerges as Leading Bidder for Bank 'Lviv'.

Credit Agricole's Ukrainian Arm Leads the Race to Acquire Bank 'Lviv'

According to Novyny.live: The shareholders of Bank 'Lviv', owned by Icelander Magreir Petursson and European funds, are planning a sale. The leading contender to purchase the bank is the Ukrainian subsidiary of the major French banking group, Credit Agricole. Founded in 1990, Bank 'Lviv' has undergone various stages of development. In 2006, it was acquired by Magreir Petursson, who later sold a 40.5% stake in 2018 to the Swiss firm ResponsAbility Participations AG.

Since then, the bank's shareholder structure has evolved. The current ownership is distributed as follows:

• ResponsAbility Participations (41%)
• Magreir Petursson (28%)
• The Dutch government fund DGGF (20.5%)
• Nordic Environment Finance Corporation (NEFCO), which holds a 10.3% stake.

In January 2022, NEFCO purchased an additional 13.9% stake, while in 2024, DGGF invested 5 million euros into the bank's capital.

The Future of Bank 'Lviv'

The shareholder group of Bank 'Lviv' is actively seeking a buyer. Potential acquirers include the Ukrainian subsidiary of Credit Agricole and the Nova group. Preliminary valuations in negotiations with Nova were around $27.8 million, whereas talks with Credit Agricole suggested a price of approximately $41.8 million. As of early February 2023, Ukraine's National Bank and the Antimonopoly Committee had not received any official applications regarding the bank's sale.

Therefore, the future of Bank 'Lviv' remains uncertain, with sale negotiations ongoing. This potential acquisition is being closely watched as a signal of foreign investor confidence in Ukraine's banking sector during a period of economic challenge.

The sale of Bank 'Lviv' could significantly impact Ukraine's financial market, as attracting foreign investors like Credit Agricole may bolster confidence in the Ukrainian banking sector. Amidst the economic instability caused by the war, such deals could represent a crucial step toward the recovery and stabilization of the country's financial system.

Source: financial market analytical review

As negotiations continue, it is important to monitor developments and potential changes in the bank's ownership structure.