Takarék Group, MKB Bank and Budapest Bank to acquire Hungarian Bankholding for $2.4bn.

Takarék Group, a banking group in Hungary, MKB Bank and Budapest Bank through the Corvinus International agreed to acquire Hungarian Bankholding, a financial holding company, for $2.4bn. In the new banking group, the Hungarian State will acquire 30% of the shares through the Corvinus International Investment, the owners of MKB will acquire 32% of the shares and the owners of MTB will acquire 38% of the shares. The acquisition provides stability and a predictable liquidity for the Hungarian economy, promoting GDP-growth. The transaction may generate a synergy of more than ten billion forints per year, which in turn may significantly strengthen the competitiveness, outlook on growth, profit-generating capacity, and stability of the banking group, and may also increase the market value of each individual bank, while further improving the quality of their customer service. The new banking group could also provide a stable foundation for future foreign expansions, which in turn could also improve the country’s GNI indicator.