“Discovery” is targeting the purchase of Bank “Rosgosstrakh”

The Federal Antimonopoly service (FAS) received a petition of “Discovery Holding” to buy more than a 75 percent stake in Rosgosstrakh Bank (RGS Bank), according to “Vedomosti” with reference to Deputy head of control of financial markets FAS Lily Belyaev.

Close to one of the parties to the transaction source told the publication that should become a stage of combining the businesses of “Open” and “Rosgosstrakh” which will be implemented in 2017-2018. The format of integration of GCF Bank into the banking business “Opening”, according to a source, still under development.

In the “Opening” refused to comment on the submission of the petition to the FAS. However, a source at the Bank said that the acquisition of CSG, the Bank is part of a major merger of the group’s business “Open” and the group “Rosgosstrakh”.

Because the transaction Bank can be a part of a larger transaction “Open” and “Rosgosstrakh”, I agree and part polled by experts. According to managing Director of the National rating Agency Paul Samieva, functions, GCF Bank is largely associated with the insurance company, so as an independent business it can hardly be seen.

“Insurance company, Bank and other businesses [Daniel] Khachaturov (the President of “Rosgosstrakh”. —) are closely related, between them are significant flows of liabilities, and to collect them separately is difficult enough,” says managing Director RAEX Stanislav Volkov.

In April 2017, it became known that Bank “Opening” has increased its share in the authorized capital of “Rosgosstrakh” from 4.4 to 19.8%, which some experts considered the beginning of absorption.

The intention of “Rosgosstrah” and “Open” to combine businesses, creating Russia’s largest private financial group with assets of more than 4 trillion and a customer base of 50 million people, the sources reported in December 2016. According to them, in exchange for insurance and other assets the ultimate beneficiary of “Rosgosstrakh” Danil Khachaturov may get a minority stake in the “Discovery”, the amount of which will depend on the results of the evaluation of assets.

GCF Bank was established in 1994 and provides all types of banking services to individuals and corporate clients. On the website of the credit organization it is noted that CSG customers of the Bank are more than 2 million individuals and more than 22 thousand enterprises.

The site also reported that GCF Bank has the second largest network of banking offices in Russia: in 75 regions of the country they openly 1,770 points of sale and installed over 400 ATMs.