By Wojciech Kosc in Warsaw
The European Commission approved the takeover of Poland’s VeloBank by funds managed by Cerberus Capital Management and its affiliates, the Commission said on June 17.
Poland’s BFG Bank – a special entity set up to help stabilise the market and which controlled VeloBank, created in the wake of restructuring Getin Noble Bank – said in April that a subsidiary of Cerberus Capital Management had signed a preliminary agreement to acquire 100% of VeloBank's shares for PLN 1.08bn (€250mn).
The offer included PLN375mn for the purchase of shares and PLN700mn for recapitalization to meet the bank's regulatory capital requirements.
'The Commission has concluded that the proposed transaction does not raise competition concerns, given the limited market position of the companies involved. The transaction was reviewed under a simplified merger review procedure,' the statement read.
VeloBank was created in effect by compulsory restructuring of Getin Noble Bank to avoid the latter’s collapse due to inadequate funding.
Getting Noble's retail and corporate banking activities were transferred to the BFG Bank, a new entity owned by the state Bank Guarantee Fund and the eight largest commercial banks.
The bank's retail and corporate business was eventually rebranded to VeloBank, which BFG Bank said at the time would be offered for sale.
VeloBank is a universal bank offering financial solutions for individual customers, small and medium-sized enterprises, selected corporations, as well as local governments and housing communities, particularly in the area of green energy transformation.
As of November 2023, the bank's total assets amounted to PLN 46.5bn.
Cerberus Capital Management, founded in 1992, is an alternative investment firm with approximately USD65bn in assets engaged across credit, private equity, and real estate markets.
