Magyar Factor becomes affiliated to Erste Group
Erste Bank Hungary Zrt. has purchased 50% of the shares of Magyar Factor Zrt (Hungarian Factoring Co. Ltd), thus becoming a decisive player in Hungary with a 22% market share, Erste Bank told MTI on Thursday.
The acquisition is a result of Erste Bank der oesterreichischen Sparkassen AG having acquired a 88.6% stake in Intermarket Bank AG, the largest factoring bank in Austria, taking over, among others, the 56.2% stake of Polis BRE Bank in Intermarket Bank. As part of the deal, Erste Bank Hungary has obtained a 50% stake in Magyar Factor from the BRE Bank, making Magyar Factor a fully-owned subsidiary of Erste Group.
Magyar Factor will cooperate closely with Erste Faktor Zrt, the bank's own factoring affiliate, founded in 2005 and boasting a 10.3% market share currently.
Reporting close to HUF 90 billion turnover in 2010, Erste Faktor was the fourth largest factoring company in Hungary last year. Magyar Factor was the third-largest player in 2010 with HUF 100.5 billion turnover, representing a market share of 11.4%.
As a result of the transaction, Erste Bank Hungary Zrt. emerges a true factoring specialist in Hungary as the second-largest provider, Erste Bank said.
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