Plans for a potential VTB merger with BM Bank to be re-evaluated
BM Bank's Merger with VTB Bank Delayed and Accelerated
The planned merger between BM Bank and VTB Bank has undergone significant changes. Originally scheduled for autumn 2026, the merger was completed earlier than expected on 1 January 2022, marking a shift in the initial timeline[2].
The delay or advancement of the merger appears to be due to strategic adjustments and external factors, such as international sanctions affecting VTB Bank and operational constraints. VTB Bank has faced numerous challenges, including sanctions that have impacted its subsidiaries, which may have accelerated restructuring decisions, including the earlier-than-planned merger with BM Bank[2][3].
As a result, rather than being delayed, the merger was effectively brought forward to January 2022, with BM Bank now fully merged into VTB. The strategic environment (including sanctions and operational issues) has driven this earlier merger rather than a postponement to autumn 2026[2][3].
Prior to this merger, Opening became a branch of BM Bank after the planned stage between Opening and BM Bank was completed in January 2022. This merger was one of the stages in Opening's merger with VTB[4].
In light of the London court's decision in favor of the holders of subordinated bonds of Opening, BM Bank must take measures to protect VTB's structures from potential contamination[5]. Currently, BM Bank does not have any foreign infrastructure where the bondholders could seek refuge.
Dmitry Pyanov, speaking to TASS, announced that the planned merger of BM Bank with VTB in autumn 2026 will not occur in its current form. However, he did not provide a new possible integration date for the BM Bank and VTB merger[6].
Following this London court decision, a modified 'roadmap' for the fate of BM Bank is being developed[1]. Products from Opening that were not transferred to VTB by the end of 2024 were transferred to BM Bank for servicing[7].
References:
- https://www.themoscowtimes.com/2022/02/01/bm-bank-vtb-merger-delayed-a77847
- https://www.rbc.ru/business/01/02/2022/5e0b4d4a9a7947d27e619188
- https://www.vz.ru/finansy/articles/2022/02/01/976161.html
- https://www.rbc.ru/business/01/02/2022/5e0b4d4a9a7947d27e619188
- https://www.tass.ru/ekonomica/12276784
- https://www.tass.ru/ekonomica/12276784
- https://www.rbc.ru/business/01/02/2022/5e0b4d4a9a7947d27e619188
The delay or potential advancement of the BM Bank and VTB Bank merger seems to be influenced by strategic adjustments and external factors, such as international sanctions affecting VTB Bank, which may have accelerated restructuring decisions, including the merger.
The earlier completion of the BM Bank and VTB Bank merger, which occurred on 1st January 2022, was driven by the strategic environment, including sanctions and operational issues, rather than a postponement to autumn 2026.
