BNP Paribas agrees to buy Polish Rabobank unit for $1.4 billion

WARSAW (Reuters) - France's BNP Paribas <BNPP.PA> agreed to buy the Dutch lender Rabobank's <RABO.UL> Polish unit Bank BGZ <BGZ.WA>, valuing it at 4.2 billion zlotys ($1.4 billion) in another sign the local banking sector undergoes fast consolidation, Rabobank said.

"BNP Paribas Group and Rabobank Group announce that they have reached agreement for the transfer to BNP Paribas of the 98.5 percent stake held by Rabobank in BGZ by valuing Bank BGZ at PLN 4.2 billion," Rabobank statement read.

The biggest Dutch retail bank, recently fined $1 billion over its involvement in the Libor rigging scandal, said in June it was reviewing its option for BGZ, but had not officially put the lender up for sale.

However, BNP confirmed last month it had placed an unbinding offer to buy BGZ, Poland's No. 11 lender in terms of assets.

(Reporting by Marcin Goclowski; Editing by Adrian Krajewski)