State giants reportedly agree to carve up Raiffeisen's Polish business

By bne IntelliNews September 9, 2016

Polish state-controlled banks PKO BP and Alior are bidding to buy Raiffeisen Bank International’s (RBI) Polish leasing and banking businesses, local media reported on September 9.

The pair is said by unnamed sources to have struck an agreement not to compete with one another for the entire Polish group, which consists of Raiffeisen Leasing and Raiffeisen Polbank, Puls Biznesu claims. The Austrian bank has been looking to offload the units for over 18 months, but uncertainties hanging over the Polish banking sector have held back interest.

PKO BP will reportedly buy the leasing unit, while Alior - which is controlled by state-run insurer PZU - is eyeing Polbank. Raiffeisen Leasing would fit PKO BP’s portfolio of financial services. The lender’s executives recently travelled to Vienna to meet with RBI on the transaction, the newspaper reports.

An acquisition would see PKO become Poland's largest leasing company. Financial market watchdog KNF has long opposed any further consolidation of the banking sector by current market leaders.

PZU is leading a government-pushed effort to 'repolonise' the banking sector by building a top-five banking group. That plan has the support of KNF. Alior acquired BPH from GE Capital in April, while the PZU-led group is also reportedly closing in on buying Pekao, Poland's second-largest bank, from Italy’s UniCredit.

RBI is likely to achieve a price of around PLN3bn-€4bn (€690mn-€920mn) for the two units, unnamed sources tell Puls Biznesu.

Read in IntelliNews Pro
Get IntelliNews Pro

Related Articles

Bulgaria's BACB to acquire 99.94% of Tokuda Bank

The Bulgarian-American Credit Bank said on April 16 it has agreed to acquire 99.94% of local Tokuda Bank from Japan-based Tokushukai Incorporated. The two banks are among the smallest in Bulgaria ... more

EIF signs guarantee agreements with 11 banks in Western Balkans, unlocking €750mn for small businesses

The European Investment Fund (EIF), part of the EIB Group, said on April 15 that it has signed guarantee agreements with 11 banks and financial intermediaries in the Western Balkans. These ... more

UniCredit sees modest growth and fiscal overshoot for Hungary in 2024

Hungary’s economic rebound will be modest this year, around 2%, and the return to potential growth is set to be postponed to 2025 with GDP expanding around 3.2%, according to UniCredit bank's ... more

Follow Us On

Most Read

  1. Iran vs Israel: Who is better equipped for war?
    5 days ago
  2. Saudi Arabia to scale back plans for Neom city
    8 days ago
  3. Oil continues to flow to Israel via Turkey despite Erdogan’s vehement speeches on plight of Gaza
    5 months ago
  4. BREAKING: Iraq, Syria and Jordan close airspace amid Iranian strike on Israel
    5 days ago
  5. PANNIER: Caspian military drills that exclude Russia and Iran have some people in Moscow asking questions
    6 days ago
  1. Russia could pay off its entire external debt tomorrow, in cash
    19 days ago
  2. Speculation swirls of “Men in Blue” in Crocus City Hall terrorist attack linked to FSB
    23 days ago
  3. Albanians campaign on social media to keep bus bridge created in freak accident
    1 year ago
  4. UBN: Russia could take the Baltic states in 48 hours
    28 days ago
  5. BRICS announce a blockchain-based payment system to create a common currency
    21 days ago

Reports

Dismiss