Although there were speculations that Erste Group was preparing to acquire Hrvatska poštanska banka, Večernji list has learned that they have set their sights on Hypo Alpe-Adria banka.
According to sources from Večernji list, they are preparing to acquire at least part of Hypo Alpe-Adria banka by the end of the year, a financial institution that was rescued by Austrian taxpayers after a series of political-business scandals, and thus ended up in 100% ownership of the Austrian state.
According to one version, Erste is allegedly preparing to acquire Hypo in its entirety, which means that there will be a significant reshuffling of power relations in many banking markets in Central and Southeastern Europe. According to another version, the Austrian part of the Hypo business is to be purchased by the Indian financial group Srei, proven in managing large infrastructure projects, while Erste would take over operations in Croatia and other parts of Southeastern Europe.
In both versions of the story, the merger of Erste and Hypo would create a bank with almost 23% market share, with a combined asset of around 93 billion kuna. In other words, the second largest bank in Croatia would be created, leading to a significant change in the balance of power. However, it is not excluded that the Competition Protection Agency, if it assesses that there is too much concentration, will order the sale of part of Hypo’s or Erste’s business, resulting in the creation of a somewhat smaller bank.
