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Erste Bank Hungary buys out partner in factoring company

Erste Bank Hungary on Friday announced it bought out its partner in Magyar Factor, giving it 100% of the factoring company.

Erste Bank Hungary bought a 50% stake in Magyar Factor from BRE Bank in the summer, but the transaction was not closed until September 9, following approval by financial market regulator PSZAF, the bank said. Preparations are underway to merge Erste Faktor and Magyar Factor, it added.

With the acquisition, Erste has become Hungary's second-biggest provider of factoring services, with close to 22% market share.

Erste Faktor had turnover of almost HUF 91 billion in 2010, making it the fourth-biggest factoring company on the market. Magyar Factor had turnover of HUF 100.5 billion, putting it in third place.