Vj-108/1997/5
KREDIETBANK NV / IRISH LIFE ASSURANCE / COMMERCIAL AND CREDIT BANK (KERESKEDELMI ÉS HITELBANK)
A Belgian commercial bank, Kredietbank, and an Irish insurance company, Irish Life Assurance created a consortium to buy ownership in the Hungarian Commercial and Credit Bank (Kereskedelmi és Hitelbank, hereinafter: KHB). In its bid the consortium undertook to increase the capital stock and issue new shares which would result in a 57 per cent ownership of KHB for the consortium.
As provided for in the Competition Act, in the case of concentration of financial institutions, ten per cent of the total assets of the parties to the transaction shall be considered. Since ten per cent of total assets of KHB alone exceeded the notification threshold the parties applied for the authorization of the Office of Economic Competition.
The investigation analysed the possible changes on the relevant market whether the transaction would create a dominant position in the Hungarian banking sector through the acquisition of controlling right in KHB by the consortium.
In the Competition Council`s view the concentration of undertakings will not create measurable changes on the relevant market and it will not cause any unfavourable effect on the customers considering the strong competition among the large number of competitors. The Competition Council authorized the transaction.
September 16, 1997. Budapest
Fógel Jánosné dr. sk. előadó
dr. Bodócsi András sk.
dr. Kállai Mária sk.
Ágoston Marika