Sovcombank, Rosevrobank to merge to become one of top Russian banks

MOSCOW, Mar 13 (PRIME) -- Sovcombank and Rosevrobank will merge to create one of Russia’s three largest banks by assets and capital, the two banks said in a joint statement on Tuesday.

Assets of the merged banking group will exceed 1 trillion rubles, while its capital will exceed 100 billion rubles, the statement read.

As of January 1, Rosevrobank was Russia’s 44th largest bank by assets, while Sovcombank was 17th largest bank.

Currently, Sovcombank controls 45% in Rosevrobank, and it will acquire at least 35% more in the bank from REG Holding. Rosevrobank Chairman of the Management Board Ilya Brodsky will convert the bulk of his shares in the bank into shares of the merged bank and will become a member of the bank’s management and supervisory boards.

Sovcombank’s CEO Dmitry Gusev said in the statement that the banks would continue working on their own without significant organizational changes until the end of 2018.

(56.6122 rubles – U.S. $1)

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