Promsvyazbank owners seek control of Vozrozhdenie

Shareholders of Russia's Promsvyazbank PJSC agreed to acquire a controlling stake in Bank Vozrozhdenie PJSC as local lenders bolster their businesses amid an economic contraction.

The acquisition will be "strategic, core and long-term" for Promsvyazcapital B.V., which is controlled by the Ananyev brothers, the company said in an e-mailed statement, without disclosing the value or size of the stake. Vozrozhdenie shares jumped 1.3 percent to 538 rubles as of 10:37 a.m. in Moscow, their first advance in eight days. Promsvyazbank declined 0.4 percent.

Russian lenders are merging and consolidating their operations as they seek to defend against stagnating lending, rising bad loans and tougher capital requirements with the introduction of Basel III rules. Promsvyazbank announced the acquisition of midsize regional lender Pervobank PJSC in July, while shareholders of B&N Bank PJSC acquired MDM Bank PJSC earlier this year, creating one of the largest private lenders in Russia.