KazKommertsBank and BTA to merge before the end of the year

KazKommertsBank and BTA are to merge before the end of the year, KazKommertsBank’s managing director Sergei Mokroussov said at the call-conference with investors today, Tengrinews reports. Earlier today KazKommertsBank said that the lender and entrepreneur Kenes Rakishev will buy 46.5% in BTA each from Samruk-Kazyna Sovereign Wealth Fund. KazKommertsBank will pay about $465 million for its share. The two banks are to merge following the deal. “The deal is expected to be finalized in the Q2 2014; the actual merger is to take place by the end of this year”, according to Mr. Mokroussov. The statement issued by KazKommertsBank said that the two banks will form the largest versatile bank in the region. “The consolidation is expected to enhance the structure of the banking sector (…) the new entity will be more resistant to economic concussions and to changes in the industry at the threshold of accession into the WTO”, the press-release reads. KazKommertsBank’s executives noted that the conditions of the merger are to be further agreed on. As of September 30, 2013 BTA’s assets stood at $10.4 billion. KazKommertsBank’s assets made up $17.1 billion. The latter renders banking services in 45 cities of Kazakhstan and has subsidiaries in Kyrgyzstan, Tajikistan and Russia.