Erste Group Bank (Erste Group) and DLL have signed a memorandum of understanding (MoU) to target for vendor financing and leasing activities in Central and Eastern Europe (CEE).
The countries in scope are Austria, Bosnia and Herzegovina, Croatia, Czech Republic, Hungary, Macedonia, Montenegro, Romania, Serbia, Slovakia, and Slovenia.
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The MoU would include a potential transfer of DLL Hungary entities into Erste Bank Hungary or one of its entities. This is subject to due diligence and agreement on the transfer terms which is expected in Q2 2018.
Through the intended strategic alliance, Erste Group and DLL aim to grow their joint business to offer vendor finance to their partners and customers as well as development opportunities for their employees.
“Erste Group has been investing in Central and Eastern Europe for almost two decades now and has seen a growing demand for leasing and vendor financing. The overall estimated potential of this market is above 17 billion euros. By joining forces with DLL, one of the world’s largest leasing companies, we have the ambition to build new direct client relations and expand our portfolio. Furthermore, we will benefit from its know-how and vast network of global relationships”, said Karin Schmidt-Mitscher, head of Erste group commercial real estate and leasing.
“DLL has a clear interest in geographic expansion, growth and finding new ways to provide our vendor partners with access to markets where we do not have a physical presence. The planned alliance will allow DLL to leverage Erste Group’s extensive network and capabilities throughout Central and Eastern Europe. Most importantly, DLL vendor partners will gain access to competitive pricing and support in the countries where Erste has capabilities”, said Marc Dierckx, chief financial officer of DLL.
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By GlobalDataThe exact terms of the strategic alliance agreement are still subject to applicable internal and external approvals but are expected to be defined during the first half of 2018.
