European private equity firm AnaCap Financial Partners is to acquire Banco Popolare Ceská Republika, the Czech subsidiary of Italy’s Banco Popolare, subject to due diligence and regulatory approvals.
Banco Popolare Ceská Republika, which incorporates a seven branch network, is a fully licensed Czech bank that serves corporate and retail customers.
Earlier this summer, AnaCap completed fundraising for a new EUR575m fund which attracted the backing of investors such as Goldman Sachs, Morgan Stanley Alternative Investment Partners and Allianz.
According to AnaCap, the Czech Republic is uniquely placed within the European Union for rapid but sustainable expansion of its financial services industry. The Czech Republic currently has a low penetration of consumer credit with household debt as a percentage of GDP at just 23 per cent, compared to the Eurozone average of 53 per cent.
Chris Patrick, partner at AnaCap, says: "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."
Following the completion of the acquisition, AnaCap will seek to broaden the product mix, deepen management capabilities, and optimise the management of assets and liabilities at the bank.
