Insurers seal merger on second tier pension fund market

The deal will be officially announced today, December 16 and waits for the CSSPP’s stamp of approval before the transaction could go forward, according to same sources. Interamerican-Bancpost merger will thus become the second merger announced on second pillar pension fund, after BCR and Omniasig.

Interamerican Pensii is managing the mandatory contribution pension component which ranks fifth in the market in terms of number of participants (over 283,000 participants and 6.34% market share), and sixth position in terms of net assets it administrates (9.3 million euros and 4.91% market share). Furthermore, Bancpost manages the 11th biggest fund with over 25,000 participants (0.56% market share) and net assets of roughly one million euros (0.54% market share).

In terms with the legal procedures, the transactions must be approved by CSSPP. The first transaction in the market, BCR-Omniasig failed because of the legal solution chosen by the two parties (acquisition of Omniasig Pensii’s stake by BCR Leasing instead of a merger between BCR Pensii and Omniasig Pensii). In order to move the transaction forward, BCR-Omniasig deal required another legal solution.

Apart from the two transactions (Interamerican – Bancpost and BCR - Omniasig), three deals concerning pension fund mergers are pending in the local mandatory contribution pension market.