Slovenia Expansion of OTP Bank Raises Political Questions

Reading Time: < 1 minute

Hungary’s OTP Bank has acquired a 100% stake in Slovenia’s Nova KBM after signing a purchase agreement with former shareholders of Apollo Global Management (former 80% owner) and the European Bank For Reconstruction and Development (20% owner). The deal is the most significant acquisition in the history of OTP, and as a result, the acquired entity will become the market leader in Slovenia (following similar acquisitions in Bulgaria, Serbia, Montenegro and Hungary).

The announcement has raised political questions since Slovenian Prime Minister Janez Jansa is viewed as a close ally of Hungary’s PM Viktor Orbán, and pro-government Hungarian investors have also helped the government in Ljubljana to build a government-loyal media there. On the basis of those issues, OTP’s recent takeover of Nova KBM is also being interpreted by critics as giving a helping hand to Slovenia’s PM, enabling a dominant role for him in the financial sector.

But observers point out that OTP CEO Sándor Csányi most probably had stronger business motives than political motivations when deciding on the takeover.

CET Editor

Recent Posts

Teltonika drops EUR 3.5bn ‘dream’ project in Vilnius

Teltonika has announced it is halting the construction of its EUR 3.5bn High-Tech Hill park…

6 days ago

Hungary’s energy strategy has left it vulnerable to electricity price speculators – report

Hungary’s electricity market has become a focal point for speculative trading, driven by a combination…

6 days ago

CEE secures EUR 1.4bn in AI funding in 2023-24

Central and Eastern Europe (CEE) is a rising force in artificial intelligence (AI) and startups…

6 days ago

EU assesses candidates’ progress in ten country reports

The European Commission (EC) analyses the accession prospects of all ten prospective members of the…

6 days ago

CEE mulls ramifications of Trump’s victory on trade, defence, environment

As Donald Trump officially declared his victory in the US election, he received congratulations from…

2 weeks ago

‘Budapest Declaration’ signed as Orban hosts EU summit

European leaders committed to developing a defence industry base and enhancing EU competitiveness at an…

2 weeks ago