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BNP Paribas to take over Bank BGŻ

9th December 2013
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The French financial group will pay z³.4.2 billion for 98.5 percent shares of BGŻ

After months of media speculation, it was finally announced that BNP Paribas will take over Bank Gospodarki Żywnoĥciowej from Dutch Rabobank. Both lenders released a statement revealing that the value of the transaction will be z³.4.2 billion (€1 billion), for which the French financial group will acquire 98.5 percent of BGŻ shares. 

If the merger is approved, BNP Paribas will become the 6th biggest lender in Poland
Courtesy of BGŻ

Until last week, there were a number of institutions in the running for the BGŻ stake. According to various reports, Santander, Bank Pekao (the Polish unit of UniCredit) and PZU were seen as other potential buyers.

Thanks to the acquisition, BNP Paribas, which has some z³.20 billion in assets, will take control of z³.37 billion of BGŻ assets as well, putting the bank in the top 10 in Poland.

The price for BGŻ might be high compared to other recent transactions on the Polish banking sector. For example, PKO BP bought Nordea – which is larger than BGŻ – for €700 million, but it has to be remembered that there were many other potential bidders in the running for BGŻ. With every such transaction, the number of lenders available for acquisition shrinks, rendering the remainders tasty morsels.

The takeover is yet to be approved by regulatory authorities. One of them, the Polish Financial Supervision Authority (KNF), has already expressed concern with the deal.

We will be verifying the reasons why Rabobank decided to change its strategy for its presence on the Polish market,” the watchdog said in a statement. Earlier this year, the KNF had signaled that in its opinion there is no need for further consolidation in the Polish banking sector.

Kamila Wajszczuk,

Jacek Ciesnowski

From Warsaw Business Journal

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