German bank to sell MKB to Hungarian Government
In order to be eligible for support from the German state, BayernLB Bank will sell MKB Bank to the Hungarian government, according to reports.
OTP Bank in Hungary has expressed interest in buying MKB Bank, and this deal may make that sale possible.
In order to win European Commission approval for its application for state aid in 2012, BayernLB agreed to restructure and sell some businesses, according to Reuters. The sale of BayernLB's Hungarian unit, MKB Hungary lets the German bank get rid of its presence in a less-profitable market.
While Prime Minister Viktor Orbán and his cabinet have said they want to see foreign banks bought up by local concerns, such as OTP, the low prices being offered for those banks have yet to encourage a sale.
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