VTB set to acquire Moscow Narodny Bank

State-owned Vneshtorgbank is set to continue its rapid expansion via a share swap to acquire several foreign banks owned by the Russian central bank, including London-based Moscow Narodny Bank and Paris-based Eurobank.

A VTB spokesperson says: “Vneshtorgbank intends to expand its foreign banks’ network in the EU countries through acquiring participations in MNB, Eurobank and Ost-West Handelsbank in Germany and Donau-Bank in Austria.”

A source at the Russian central bank told Reuters that VTB would swap a 20% to 30% share of itself for the foreign banks, which the central bank would then sell on the market at a later date.