€7 billion deal marks Europe’s largest cross-border banking transaction in 20 years
Erste Group Bank AG, the Austrian banking group that owns Banca Comercială Română (BCR), has successfully completed the acquisition of a 49% stake in Santander Bank Polska and a 50% stake in Santander Towarzystwo Funduszy Inwestycyjnych from Banco Santander, the group announced in a statement cited by Agerpres.
The transaction, valued at around €7 billion in cash, makes Erste Group the lead shareholder with de facto control of Poland’s third-largest bank by assets. According to the Austrian lender, this is the largest cross-border banking deal in Europe in the past two decades.
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“Erste Group has completed the largest cross-border transaction in the European banking market in 20 years. Expanding into one of Europe’s fastest-growing banking markets will significantly enhance the group’s profitability,” the statement said. Erste Group and Santander Group have also formed a strategic alliance to better serve corporate and institutional clients, leveraging their complementary international footprints.
“We are not just an investor, but a long-term partner committed to supporting Poland’s growth,” said Peter Bosek, CEO of Erste Group. He added that the cooperation allows clients to benefit from Santander’s global franchise while gaining access to Erste’s deep expertise across Central and Eastern Europe (CEE).
The group highlights strong economic ties between Poland and the broader CEE region, where Polish companies direct more than 25% of their outbound foreign direct investment. The alliance aims to support international growth strategies through expanded corporate banking, capital markets, trade finance, and working capital solutions.
Financially, the acquisition is expected to significantly boost Erste Group’s performance. By 2026, return on tangible equity (ROTE) is projected at around 19%, while earnings per share (EPS) are expected to rise by more than 20%, strengthening the group’s capital allocation and shareholder value creation.
Photo: The Diplomat
