The Polish Financial Supervision Authority agrees to takeovers in Santander. Erste Group strengthens its position
The consent for the Austrian group to take over a block of shares in Santander Bank Polska is for Erste Group is crucial because this acquisition will give an important position on the Polish banking market.
The Polish Financial Supervision Authority announced that it does not oppose the direct purchase by Erste Group Bank of shares in Santander Bank Polska in a number enabling it to exceed the threshold of one third of the total number of votes at the general meeting.
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The agreement concluded at the beginning of May stipulates that Erste Group is to purchase 49 percent. shares of Santander Bank Polska and 50 percent shares in Santander Towarzystwo Funduszy Inwestycyjnych.
The value of the entire transaction was estimated at approximately EUR 7 billionwhich makes it one of the largest capital operations in the history of the Polish banking sector.
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Approvals also for insurance and consumer banking
The Polish Financial Supervision Authority's decision does not only apply to retail banking. The commission also stated there are no grounds to object to the acquisition by Santander Consumer Finance of a block of shares in Santander Consumer Bank, which will ensure that the stake exceeds 50%. votes and shares in the share capital of this institution.
Santander Bank Polska
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MOZCO Mateusz Szymanski / Shutterstock
At the same time, the supervisory authorities accepted an indirect increase in Erste Group's involvement in the insurance segment. This concerns the purchase of shares of Santander Allianz Towarzystwo Ubezpieczeń and Santander Allianz Towarzystwo Ubezpieczeń na Życie on a scale allowing for more than one third of the votes at the general meetings of both companies. The Polish Financial Supervision Authority also did not raise any objections to the direct takeover of 50 percent by Erste Group. shares of Santander TFI, which will give the Austrian investor full ownership control over the investment fund company.
Financial strength and liabilities under the supervision of the Polish Financial Supervision Authority
In the announcement, the Polish Financial Supervision Authority emphasized that when assessing the investor's warranty, it took into account the financial situation of Erste Group, its many years of experience in the financial sector and the scope of commitments presented in connection with the planned transactions. Declarations regarding capital support for the acquired entities, corporate governance principles and future dividend policy were of particular importance.
In the case of Santander Bank Polska, the Commission additionally drew attention to the obligations related to maintaining the bank's listing on the Warsaw Stock Exchange and maintaining an appropriate level of shares in free float. As indicated, the assessment also included the opinions of the European Central Bank – as the parent supervisory authority for Erste Group – as well as the positions of regulators from other European Union countries supervising the subsidiaries of the Austrian group.
