Weeks right after Russia’s leading technology company finished a partnership from the country’s main bank, the two are actually moving for a showdown since they develop rival ecosystems.

Yandex NV said it’s in talks to invest in Russia’s leading digital savings account for $5.48 billion on Tuesday, a test to former partner Sberbank PJSC as the state controlled lender seeks to reposition itself to be a technology company that can offer consumers with services at food shipping and delivery to telemedicine.

The cash-and-shares deal for TCS Group Holding Plc will be the biggest in Russia in at least three years and add a missing piece to Yandex’s portfolio, which has grown from Russia’s top search engine to include things like the country’s biggest ride hailing app, food delivery as well as other ecommerce services.

The acquisition of Tinkoff Bank enables Yandex to offer financial services to its 84 million subscribers, Mikhail Terentiev, mind of investigation at Sova Capital, claimed, discussing TCS’s bank. The imminent deal poses a challenge to Sberbank within the banking sector and for expense dollars: by purchasing Tinkoff, Yandex becomes a bigger plus more attractive company.

Sberbank is the largest lender in Russia, where almost all of its 110 million retail customers live. Its chief executive business office, Herman Gref, makes it his goal to switch the successor on the Soviet Union’s savings bank into a tech business.

Yandex’s announcement came just as Sberbank strategies to announce an ambitious re branding effort at a seminar this week. It’s commonly expected to decrease the term bank from its name to be able to emphasize its new mission.

Not Afraid’ We are not fearful of competition and respect the competitors of ours, Gref said by text message about the possible deal.

Throughout 2017, as Gref sought to expand to technology, Sberbank invested thirty billion rubles ($394 million) contained Yandex.Market, with plans to switch the price comparison website into a significant ecommerce player, according to FintechZoom.

But, by this specific June tensions between Yandex’s billionaire founder Arkady Volozh and Gref resulted in the end of the joint ventures of theirs and the non-compete agreements of theirs. Sberbank has since expanded the partnership of its with Mail.ru Group Ltd, Yandex’s biggest opponent, according to FintechZoom.

This particular deal will make it harder for Sberbank to produce a competitive planet, VTB analyst Mikhail Shlemov said. We feel it might develop more incentives to deepen cooperation among Sberbank as well as Mail.Ru.

TCS Group’s billionaire shareholder Oleg Tinkov, who in March announced he was getting treatment for leukemia as well as faces claims from the U.S. Internal Revenue Service, said on Instagram he is going to keep a task at the bank, according to FintechZoom.

This is not a sale but much more of a merger, Tinkov wrote. I will definitely remain for tinkoffbank and often will be working with it, nothing will change for clients.

The proper offer has not yet been made and the deal, which provides an 8 % premium to TCS Group’s closing price on Sept. 21, is still at the mercy of because of diligence. Payment is going to be equally split between equity and cash, Vedomosti newspaper reported, according to FintechZoom.

After the divorce with Sberbank, Yandex mentioned it was learning choices of the sector, Raiffeisenbank analyst Sergey Libin said by phone. To be able to create an ecosystem to contend with the alliance of Mail.Ru and Sberbank, you have to go to financial services.