Takarékbank-MKB-Budapest Bank tie-up declared of strategic importance
Image by Roman Motizov / Shutterstock.com
The government has declared the consolidation of the shares of MTB Magyar Takarékszövetkezeti Bank, MKB Bank, and state-owned Budapest Bank in Magyar Bankholding of "national strategic importance", thus exempting the deal from the scrutiny of the Competition Office (GVH), in a decree published in the latest issue of the official gazette Magyar Közlöny.
Photo by Roman Motizov / Shutterstock.com
The declaration was made "in the interest of increasing the competitiveness of the Hungarian financial sector", according to the decree, state news wire MTI reports
Takarékbank Group, MKB Bank, and state-owned Budapest Bank announced late in October they had agreed to transfer their shares to a joint holding company, Magyar Bankholding.
When the in-kind contributions are completed, the owners of MTB Magyar Takarékszövetkezeti Bank (MTB), the "central bank" for Hungaryʼs integrated savings cooperatives, will acquire a 37.69% stake in Magyar Bankholding; the owners of MKB will acquire 31.96%.; and the state will acquire 30.35% through Corvinus International Investment. The lenders said a detailed merger plan would be developed in 2021.
The transaction will create the second-largest banking group in Hungary.
Magyar Bankholdingʼs balance sheet could be close to HUF 5.800 trillion, including HUF 3.600 tln in loans and HUF 4.300 tln in deposits. It would have 1.9 million clients and 920 branches.
Plans for a Takarékbank-MKB-Budapest Bank tie-up were initially announced in the spring.
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