Raiffeisen starts Kazakh bank after M&A fruitless
Austrian bank Raiffeisen International will start a new banking business in Kazakhstan next year after months of fruitless attempts to take over a business in the oil-rich central Asian country.
“Due to its economic potential and politically stable environment, Kazakhstan is an attractive market”, said CEO Herbert Stepic in a statement. “We have been observing this market for a long time and we believe that now is a good time to make this step.”
Raiffeisen and other international banks had hoped for a chance to buy assets in the country as its banks were hit severly by the global liquidity squeeze that began last year. But Stepic said Kazakh banks’ owners were asking too much on price. He has not revealed which banks he had been in talks about or how far those talks had gone.
A Raiffeisen spokesman said the “main priority” of the bank was now the launch of the new operation, but that it would still continue to look at opportunities if and when they come up. Raiffeisen sold a 7.7% stake in Kazakh Bank TuranAlem in 2006 because it did not see an opportunity to increase the shareholding. It has owned a leasing business in Kazakhstan since 2005. Raiffeisen shares traded down 2.3% at €70.80 by 0827 GMT, as the DJ European Banks index dropped 1.9%. (Reuters)
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.