AnaCap Financial Partners (AnaCap), the London-based private equity firm, is set to acquire Banco Popolare Ceska Republika (BPCR), the Czech subsidiary of Italy-based Banco Popolare. BPCR incorporates a seven branch network and serves corporate and retail customers.
According to AnaCap, the Czech republic’s financial position is stable among all emerging markets with relatively low foreign exchange volatility and sovereign indebtedness. Its retail banking market is also profitable within the EU, with customers and regulators keen to welcome new competition and product evolution. As per Raiffeisen Research, the Czech Republic currently has a low penetration of consumer credit with household debt as a percentage of GDP at just 23%, compared to the Euro zone average of 53%.
AnaCap said that following the completion of the acquisition they will seek to broaden the product mix, deepen management capabilities, and optimise the management of assets and liabilities at the bank.
Chris Patrick, partner at AnaCap, said: “The credit crunch has encouraged some companies to divest non-core activities and this acquisition provides us the rare opportunity to grow a banking business in one of the most profitable banking markets in Europe.
“Households in the Czech Republic have amongst the most conservatively managed finances in Europe so there is significant scope in the Czech Republic for a growth in sensible and simple consumer credit and deposit products.”
However, the deal is subject to confirmatory due diligence and all regulatory approvals.
