Erste Group Bank AG is in advanced talks to buy BNP Paribas SA’s consumer-finance business in the Czech Republic, people with knowledge of the matter said.
(Bloomberg) — Erste Group Bank AG is in advanced talks to buy BNP Paribas SA’s consumer-finance business in the Czech Republic, people with knowledge of the matter said.
The banks are putting the final touches on a deal that could be announced in the coming weeks, according to the people. It would give Vienna-based Erste a business with 9.9 billion Czech koruna ($463 million) in loans and a more than 20% share of the Czech Republic’s credit card market, they said.
Deliberations are ongoing and could still falter or be delayed, the people said, asking not to be identified discussing confidential information. Spokespeople for BNP Paribas and Erste Bank declined to comment.
The potential sale forms part of deliberations by BNP Paribas on the future of its consumer finance unit, as it looks for ways to streamline its portfolio to raise cash and focus on core markets. It’s already sold a similar unit in Bulgaria and is weighing disposals in other emerging markets, including Romania and Hungary.
It plans to continue serving corporate clients in the Czech Republic and will also still offer other banking services there.
Erste Bank serves retail customers, corporates and financial institutions across Austria and Eastern Europe, with core operations in countries including the Czech Republic, Slovakia, Hungary and Croatia, according to its website. The BNP Paribas deal would add to other recent acquisitions in the region by Erste Bank, including Czech assets from Sberbank of Russia PJSC and a Hungarian business from Commerzbank AG.
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