"Vienna Insurance Group" to buy all insurance activities of Erste bank for 1.4 billion EUR
- "Vienna Insurance Group" has signed contract with Erste bank on procurement of all insurance activities, including companies in Austria, Czech Republic, Slovakia, Hungary, Croatia and Romania, at the price of 1.4 billion EUR - "Vienna Insurance Group" announced.
According to the announcement, another part of transaction is signing of long-term Agreement on sale, which will make it possible for Vienna Insurance Group to access entire retail network of Erste bank in aforementioned countries, with over 16m clients and more than 2,900 offices.
- With this acquisition and long-term cooperation, "Vienna Insurance Group" has the unique opportunity to realize its strategy of constant growth in central and east Europe. Measuring the scope of premiums, with this acquisition, as an insurance group, we will become the number one among the international insurance companies that are active in central and east Europe, as well as leading provider of services in field of life insurance, which I see as the future initiator of growth in Austria and central and east Europe – said Ginter Gajer, CEO of "Vienna Insurance Group".
He pointed out that two financial concerns with proved know-how in field of financial services would unite their forces in this region in order to create long-term partnership with great prospects for clients, associates and stockholders.
Realization of the transaction is expected to take place in the third quarter of year 2008.