France-based BNP Paribas said it had agreed to the purchase of the Polish unit of Netherlands-based Rabobank Groep. The price tag for the deal is EUR 1 billion or USD 1.36 billion. In a joint statement, the two companies said France's biggest bank will take over the 98.5% stake held by Rabobank Groep in Bank Gospodarki Zywnosciowej or BGZ, an agricultural bank.

The statement said the transaction will reduce the core Tier 1 capital ratio of BNP Paribas by an estimated 15 basis points. BNP added that the acquisition will immediately add to their earnings per share.

BNP Paribas Chief Executive Officer Jean-Laurent Bonnafe said in the statement, "The acquisition of Bank BGZ constitutes a major step towards attaining a critical size in Poland. The transaction will establish the BNP Paribas Group as a reference player in Poland's banking sector."

Rabobank, meanwhile, said the purchase was another sign of the rapid consolidation taking place in the banking sector. In June, the Dutch bank said it was evaluating its choices for BGZ, but that it had not officially placed it on the auction block.  Recently, Rabobank was slapped a USD 1 billion fine due to its involvement in the scandal involving the rigging of the London Interbank Offered Rate or LIBOR, Reuters reported. 

Last month, BNP confirmed that it had submitted its unbinding offer for the acquisition of BGZ. The unit is the eleventh largest lender in Poland as far as assets are concerned.

Information gathered from Bloomberg showed that BNP Paribas provides commercial, private, retail, investment and corporate banking services and attracts deposits. It also offers investment advisory services and asset management to various clients in the US, Europe, Asia and the Emerging Markets. In its website, the Rabobank Group said it is an international financial services provider. It has activities in asset management, banking, insurance, leasing and real estate.