Erste Bank has announced that the Austrian Cartel Court has ruled that the supplementary agreements that have been signed by Erste Bank, the cross-guarantee company, and the savings bank of Wiener Neustadt (Lower Austria), as a model case, are sufficient to form the basis for a business combination. These supplementary agreements encompass the involvement of Erste Bank in the nomination of board members, financial budgets and strategic business decisions.
Our view: It is positive that the Cartel Court has officially approved the legal rights of Erste Bank to cooperate with savings banks. However, we do not expect the news to have a significant trading impact today.