Cerberus Capital Management takes over VeloBank
In March this year subsidiary Cerberus Capital Management signed a preliminary 100% purchase agreement. VeloBank shares for PLN 375 million, the agreement also provided for recapitalization of VeloBank of PLN 700 million. The EC's consent was one of the conditions for finalizing the takeover.
“The European Commission has approved, in accordance with the EU Takeover Regulation, the acquisition of exclusive control of VeloBank SA in Poland by funds and accounts managed by Cerberus Capital Management, LP and its subsidiaries from the USA,” the EC said in a statement. The Commission found that the transaction did not raise any objections from the point of view of market competition.
EC consent
VeloBank is a bridge institution to which the assets – except for foreign currency loans – of Getin Noble Bank were transferred after the Bank Guarantee Fund initiated the resolution procedure against Getin Noble Bank in September 2022 – compulsory restructuring. BFG has 51 percent. VeloBank, and 49 percent belongs to the Commercial Bank Protection System, which in turn is a company of the eight largest domestic banks. On June 30, 2023, BFG started the sale procedure of VeloBank.
After closing the transaction, VeloBank will cease to be a bridge institution and therefore will no longer be subject to any operational restrictions imposed by the European Commission, it will also be subject to the so-called bank tax.
Founded in 1992 Cerberus Capital Management deals in alternative investments, has assets worth approximately USD 65 billion. Cerberus invested in financial institutions around the world and in Europe, including CCF and My Money Bank in France, Hamburg Commercial Bank in Germany and BAWAG in Austria. (PAP)