VTB Bank (PJSC) signed a memorandum to acquire an 81% stake in PJSC SAROVBUSINESSBANK, one of the largest banks operating in Russia's Nizhny Novgorod region.

Financial details of the transaction were not disclosed.

The state-owned lender plans to complete the acquisition by the end of 2018, subject to securing regulatory approvals. The final size of the stake will be determined after completion of a mandatory buyback offer for Sarovbusinessbank's minority shareholders.

Once the integration of the banks is completed in 2020, Sarovbusinessbank will start operating under the VTB Group brand and will focus on strengthening the market position in the Nizhny Novgorod region, VTB Bank said Oct. 10.

Sarovbusinessbank's current largest shareholders include Vladimir Travin, who owns 30.94% of the bank, and Irina Alushkina, who holds a 19.99% stake in the lender, Vedomosti noted.

VTB Bank recently finalized the acquisition of another lender, Vozrozhdenie Bank, and plans to complete the integration process with the bank in 2020.