Poland: of hope and glory

5 December 2013 By Dominic Elliott

The $1.4 bln deal for Rabobank’s retail business in Poland is what cross-border banking M&A looks like post-crisis. BNP is paying a premium to book value for a business with low returns. The French bank avoided a costly auction but needs synergies and growth to make the deal pay.

This content is for Subscribers only

Context News

BNP Paribas agreed on Dec. 5 to buy Rabobank’s stake in Polish retail bank BGZ for 4.1 billion Zlotys (1 billion euros), in a deal that would make the French lender the seventh largest operator in the country by assets.

The transaction is subject to regulatory approval, but one person familiar with its details said it could be completed in the next three to six months. UniCredit and Santander had also expressed interest in buying Rabobank’s 98.5 percent stake in BGZ.

An earlier version of this view has been updated to clarify BNP’s common equity ratio for the third-quarter and 2013 overall.

Email a friend

Please complete the form below.

Required fields *