Bulgaria's central bank said it has approved the merger of local Unionbank and its parent First Investment Bank (Fibank).
As a result, Unionbank will be wound up without liquidation, the Bulgarian National Bank (BNB) said in a statement.
After the merger, Unionbank is expected to improve its financial performance, according to BNB's analysis.
The merger comes after Fibank acquired 100% of Unionbank from Hungary's MKB in August last year.
Fibank is currently Bulgaria's third biggest bank with assets of 7.45 billion levs ($5.3 billion/3.8 billion euro) and Sofia-based Unionbank ranks 15th with assets worth 1.45 billion levs at end-December.
The decision can be contested within 14 days.