The State Bank of Viet Nam has allowed South Korean conglomerate Lotte Group’s credit card arm to take over TechcomFinance, a subsidiary of private lender Techcombank.

TechcomFinance said it received the central bank’s Document 501/NHNN-TTGSNG regarding the approval for acquisition by Lotte Card last Friday, vietnamfinance.vn reported.

The deal was approved by Techcombank’s board of directors on May 22, 2017. At that time, the financial term of the deal was estimated at dozens of millions of US dollars.

TechcomFinance, which has a charter capital of VND600 billion, was set up in 2015 after Techcombank acquired 100 per cent stake in Viet Nam Chemical Finance JSC, a subsidiary of the Viet Nam National Chemical Group, during the group’s restructuring process.

Lotte Card, founded in December 2002, provides financial services such as cash-lending credit cards and instalment payment services.

With the deal, the South Korean conglomerate sought to expand its presence in consumer credit and card services in Viet Nam.

Lotte Group has been present in Viet Nam for 10 years, operating in a number of sectors, such as fast food with Lotteria, retail with Lotte Market and Lotte Department Store, recreation with Lotte Cinema, real estate with Lotte Hotels & Resorts and e-commerce with Lotte.vn. — VNS