The European Commission has cleared under the EU Merger Regulation the proposed acquisition of the Hungarian insurance company OTP Garancia by the French insurance and banking group Groupama. The Commission concluded that the operation would not significantly impede effective competition in the European Economic Area (EEA) or in any substantial part of it.

The exclusive talks announced on 03 April between representatives of Asiban, on the sell side, and Groupama, on the buy side, have led to the signature of an agreement for the acquisition by Groupama International of the entire share capital of Asiban S.A (Asiban).

The Commission's investigation focused on the underwriting of non-life insurance products in Hungary and, more specifically, on casualty-accident and fire insurance, where the main overlaps in the activities of the parties can be found.

Following its market investigation, the Commission concluded that in view of the parties' limited presence in these markets, the absence of significant barriers to entry and the presence of strong and internationally active competitors in the relevant markets, no competition concerns would arise as a result of the proposed transaction.

Who are Asiban?

Set-up in 1996 by 4 leading Romanian banks, Asiban is one of the top Romanian life and non-life insurance companies (the third largest composite insurer in 2007 with an 8% market share). In addition to its in-house selling capabilities, Asiban has a diversified nationwide distribution platform consisting mainly of brokerage networks and agents working on a self-employed basis. In 2007, Asiban’s premium amounted to 185.8 million EUR, 39% up from previous year and almost 7 points percentage higher than the Romanian insurance market growth.