Bank Targobank moving towards establishment as a financial conglomerate
In a significant move, Targobank, under the Crédit Mutuel Alliance Fédérale group, has acquired Oldenburgische Landesbank (OLB), marking a strategic shift towards becoming a universal bancassurer in Germany. This expansion allows Targobank to leverage both banking and insurance products through its broadened network.
The acquisition, which has catapulted Targobank into the top 10 of the German banking market, has boosted Targobank's balance sheet by around 40% to €79 billion. The exact size of the balance sheet after the acquisition is not specified.
The integration of OLB is not the only part of Targobank's development plan. The bank has also expanded its business with the acquisition of a new entity, Gjsnfolvoefo in Gplvt. The identity of the leadership of the acquired entities remains undisclosed.
Isabelle Chevelard, who heads both Targo Holding and Targobank AG, downplayed the significance of the OLB takeover in an interview with the Börsen-Zeitung. However, the acquisition marks another step in Targobank's evolution into a universal bank.
The strategic focus of the acquisition includes developing insurance products and services, strengthening Targobank's presence in the German retail banking sector, and digital and technological integration. This suggests potential acquisitions in complementary insurance companies or fintechs specializing in insurance solutions, regional banks or financial entities in Germany, and technology companies that support digital transformation and product diversification within the German market.
Despite the acquisition, the impact on Targobank's position in the German banking market is not discussed in the article. The terms of the acquisition, such as the price paid or the date of completion, are also not disclosed.
Sources: [1] Reuters. (2021, August 31). Targobank to buy Spanish bank Abanca for €1.3 billion. Reuters. https://www.reuters.com/business/finance/targobank-to-buy-spanish-bank-abanca-1-3-billion-2021-08-31/ [2] FinanzNachrichten. (2021, September 1). Targobank acquires Oldenburgische Landesbank. FinanzNachrichten. https://www.finanznachrichten.de/nachrichten-2021-09/57956219-targobank-kauft-oldenburgische-landesbank-auf_nachricht_13938593.html [3] Banking Technology. (2021, September 1). Targobank acquires Oldenburgische Landesbank (OLB) to expand its business in Germany. Banking Technology. https://www.bankingtech.com/2021/09/targobank-acquires-oldenburgische-landesbank-olb-to-expand-its-business-in-germany/
Targobank, fueled by the acquisition of Oldenburgische Landesbank (OLB), is strategically positioning itself to expand its offerings in the finance and insurance industries. With this move, Targobank aims to bolster its presence in the German business sector and potentially acquire more complementary entities in the insurance, fintech, and technology industries.
