Another major bank to disappear from Hungary: here is what to expect

Provided that the Hungarian Competition Authority (GVH) finds no reason to object to Cofidis’ acquisition of Magyar Cetelem, the big bank could disappear from the scene.

Magyar Cetelem to disappear

Another domestic financial institution could disappear from the scene if the Hungarian Competition Authority allows Cofidis to take over Magyar Cetelem, mfor.hu reports.

The news first emerged back in May. Then, it was reported by Privátbankár that French Cofidis SA has signed an agreement to acquire the Hungarian subsidiary of BNPP PF Group. Thus, the shares of Magyar Cetelem Bank will be owned by Cofidis SA.

At the time, the parties announced that the Cofidis/Cetelem deal could enter into force in the first quarter of 2024. Until then, it is subject to the various regulatory approvals.

As a step in this direction, Cofidis and Cetelem filed a merger notification with the Hungarian Competition Authority (GVH) on Monday. They announced that Cofidis SA intends to acquire 100% of the shares of Magyar Cetelem Plc. from BNP Paribas Personal Finance SA.

The merger of two companies

According to mfor.hu under domestic law, a merger between one or more companies must be notified to the GVH if there is a possibility that their merger or the merger of one into another could be considered an act restricting competition. The GVH may decide not to investigate the merger, but it may also decide to examine the merger and either approve it or block it.

In the aggregate ranking of domestic credit institutions, Cofidis’ Hungarian Branch, with a balance sheet total of HUF 119 billion (EUR 309.6 million), ranked 19th in 2022, just ahead of Magyar Cetelem Bank with a balance sheet total of HUF 106 billion (EUR 275.8 million).

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