The ongoing merger between Patria Bank SA and Banca Comerciala Carpatica SA was postponed because of an unexpected intervention by a local tribunal in Romania, Patria Bank said Jan. 18.
The final formality in the deal, which follows Patria's acquisition of a majority of BCC, was blocked when the Bucharest Municipal Tribunal denied the request to merge the two lenders Jan. 17.
"We anticipate that this unexpected decision will result in a short delay of the merger, to a date subsequent to Feb. 1, 2017," Patria said. An update will be provided to the market as soon as the court publishes its written motivation, it added, emphasizing that the central bank had given its approval in early 2016 and that both companies are confident in the integrity of their documentation.
Operations continue normally at the two banks, as they stand ready to carry out the agreement, executives said.