Takeover of Splitska Banka by Hungary's OTP approved

Societe Generale Splitska Banka is the 5th largest bank in Croatia. As a universal bank it is active both in the retail and corporate segments. As a result of the takeover, OTP’s market share in Croatia will grow to around 10%.

A statement by CNB also reveals that the central bank’s Council approved a decision by the Supervisory Board of Société Générale Splitska Banka to appoint Slaven Celic Chairman of the Board and Balázs Balogh adn Balázs Olchváry memers of the Board.

OTP announced on 21 December last year that its Croatian subsidiary OTP banka Hrvatska, signed an acquisition agreement on purchasing 100% shareholding of Splitska Banka, adding that the financial closure of the transaction was expected in the summer 2017 and that the integration process could be completed by the summer 2018.

OTP Bank has been operating in Croatia since 2005, and it was always profitable, even during the financial crisis that started in 2008.

OTP’s share price practically stagnated on the Budapest Stock Exchange (BSE) on Wednesday, finishing trading at HUF 8,104. The chart below shows that since the all-time high around HUF 9,500 reached in February, the share price has dropped significantly and is approaching the 200-day moving average (brown line).

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• acquisition,
• société générale,
• companies,
• croatia,
• market,
• equity,
• takeover,
• otp