Budapest Bank acquisition exempted from competition office scrutiny
Because the government is planning to declare the acquisition of Budapest Bank as being “strategically important for the national economy”, it will become exempt from the oversight of Competition Office.
A preliminary contract on the purchase of Budapest Bank from GE was signed by the Hungarian government on Thursday. The transaction is expected to be closed at the end of the first half of next year.
Corvinus Nemzetközi Befektetési, which is a unit of the Hungarian Development Bank (MFB), is expected to buy the bank at a price to be determined based on the due diligence report. MFB will lend the unit the full purchase price and guarantee the deal.
MFB will also exercise ownership rights over Budapest Bank. Minister of Prime Minister’s Office János Lázár is scheduled to submit a proposal on financing the purchase price by January 15. Budapest Bank had consolidated net assets of HUF 154.1 bln at the end of 2013. It had total assets of HUF 905.4 bln, making it Hungary's eighth-biggest bank. The bank closed the year with a consolidated net profit of HUF 13.1 bln.
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