Could the emerging Hungarian superbank conquer the financial market?
The plan we have been talking about since 2013 will come to fruition when three market-leading Hungarian banks merge into a single holding company, creating a new superbank. They plan to enter national and regional markets in the coming years.
The largest Hungarian bank today is OTP, which has been run by Sándor Csányi for decades. Csányi is the president of the Hungarian Football Association, and he is also known to be the vice-president of FIFA.
Csányi spent many years being Hungary’s richest businessman, until a close friend of Viktor Orbán’s, Lőrinc Mészáros, preceded him last year.
Curiously, Mészáros seems to be interested in the superbank.
Read more: Can you guess who is the richest Hungarian?
The merger of three existing banks
Based on the plans of Magyar Bankholding, the creation of the superbank will be implemented in two stages. Budapest Bank and MKB will be the first to merge as MKB Bank.
On December 15, Magyar Takarék Bank Holding Zrt., Which owns MKB Bank, Budapest Bank and Takarék Group, approved the first stage of the merger, according to Forbes.hu.
The Takarék group will join the merger later, by the end of the second quarter of 2023.
The first merged bank, which will be created on March 31, 2022, will operate temporarily under the name MKB Bank. However, the brand name, logo, brand values and other image elements of the large emerging bank are still under development. The introduction of a unified financial institution brand is expected to take place in early 2023, according to Portfolio.hu
Read more: Soaring inflation to devastate the Hungarian economy?
With the merger of the three financial institutions in 2023, Hungary’s second commercial bank will be created. Until then, it will be able to make acquisitions in Hungary and abroad, and eventually, it will be able to appear in other countries in the region.
Management also aims to expand the banking group’s presence on the stock market, building on MKB Bank’s existing experience in capital markets.
The merger does not mean a change in the ownership structure of the banking group, Magyar Bankholding Zrt. will continue to be the dominant owner of the banks participating in the merger.
Source: Forbes.hu, Portfolio.hu