Russia's VTB, Rostec buy 20 pct in Angola's Banco Privado Atlantico

MOSCOW Wed Feb 26, 2014 10:27am EST

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MOSCOW Feb 26 (Reuters) - Russia's second-largest bank VTB and state conglomerate Rostec will buy a stake of around 20 percent in Angolan bank Banco Privado Atlantico, VTB said on Wednesday.

In a statement, VTB said that under the agreement, VTB's existing subsidiary in Angola, Banco VTB Africa, will merge with Banco Privado Atlantico.

There was no price disclosed for the deal, but VTB said the deal, which strengthens the Russian bank's business in the oil-rich country, should be completed mid-year.

VTB's Chief Executive Andrei Kostin said at a press conference that VTB will probably hold the investment in the bank for three years. The investment will be made through the bank's investment arm, VTB Capital. (Reporting by Megan Davies in Moscow and Shrikesh Laxmidas in Luanda)

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