OTP Bank close to acquire MKB from BayernLB

By Staff Reporter

Apr 02, 2014 02:02 PM EDT

On Wednesday, sources who were familiar with the matter told Reuters that OTP, the biggest bank in Hungary, is close to acquiring a local rival bank. OTP was said to acquiring MKB from BayernLB, a German state-backed bank, following the losses of the rival bank.

The sources added that BayernLB and OTP had been in intense discussions in the past weeks. A deal is likely to be closed although the price for the acquisition is not yet definite, said sources. The acquisition planned by OTP would allow it to have a tighter grip on its current position as the largest lender in Hungary. Further, an acquisition would be in conformity with the government’s plans to transfer foreign banking assets to local banks.

BayernLB had been incurring losses and selling MKB would be big step to appease its current burdened condition.

OTP did not comment on the report. BayernLB also refused to comment.

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