Erste’s successful takeover of Banca Comerciala Romana

In Hungary

Romania's Competition Council approved Erste Bank AG's takeover of Banca Comerciala Romana SA, the country's biggest lender, pending final ratification of the transaction by parliament. Erste Bank, Austria's second-biggest lender, in December agreed to pay € 3.75 billion ($4.82 billion) for 61.9% of the Romanian lender that's also known as BCR, beating a rival bid from Banco Comercial Portugues SA. That stake includes the 25% plus one share held jointly in the lender by the European Bank for Reconstruction and Development and the International Finance Corp. „The majority stake was sold to the investor that offered the highest price.” Romanian Finance Minister Sebastian Vladescu said last month that the government and Erste Bank agreed upon a Sept. 21 deadline to complete the sale of BCR. The council yesterday also approved a July 26 decision by the government to limit damages deriving from would-be claims on BCR linked to the 1999-takeover of Romania's bankrupt bank Bancorex SA. Authorities determined at the time that Bancorex had accumulated losses totaling $2 billion from bad or preferential loans. Vladescu said last month that the government adopted a decision limiting would-damage payments to no more than half of the € 3.75 billion Erste agreed to pay for BCR. Any claims should be filed no later than Dec. 31, 2013, according to the decision. (Bloomberg)

ADVERTISEMENT

Századvég raises GDP forecast to 7.8% Analysis

Századvég raises GDP forecast to 7.8%

Opposition parties to begin PM candidate primaries Elections

Opposition parties to begin PM candidate primaries

New editor-in-chief at Betone Studio Appointments

New editor-in-chief at Betone Studio

Budapest leaders make public transport free for under-14s City

Budapest leaders make public transport free for under-14s

SUPPORT THE BUDAPEST BUSINESS JOURNAL

Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.