Erste Bank Hungary and its subsidiary Erste Befektetesi have received the green light from Hungarian Competition Authority and the National Bank of Hungary to acquire Citibank’s retail arm in Hungary.
"This decision is in line with Citi’s global strategy of focusing its resources on those sectors where it has a competitive advantage, including its institutional and commercial banking businesses in Hungary," Erste Bank said in a statement.
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Under the terms of the transaction, Erste Bank will take over Citibank’s retail banking and investment division, consumer loans, cards business, and CitiBusiness microenterprise accounts.
Citibank’s consumer banking employees will migrate to Erste Bank following completion of the deal, which is expected by the fourth quarter of 2016.
The deal would make Erste Bank the second largest player in the Hungarian retail banking industry, Erste Bank said.
Citi would now its focus on expanding its services to corporations, financial institutions, multinational clients in Hungary and public sector clients, as well as expand its Citi Service Center in Budapest.
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