Sources inform ''Globes'' that Bank Hapoalim (LSE: BKHD; TASE: POLI) has allocated $200 million to buy a bank in Russia or Ukraine. The bank declined to comment on the report.
Two months ago, Bank Hapoalim withdrew from plans to invest a similar sum in a Russian bank at a value of $350 million. Sources at the bank said that the deal was cancelled when the sellers substantially raised their asking price.
Prices for banks in Eastern Europe and Russia are going up fast. Last week, Bank Leumi (TASE: LUMI) suspended negotiations to buy a stake in Georgia’s TBC Bank, when the bank’s shareholders raised their asking price.
800 banks operate in Russia, and its banking market was estimated at $250 billion in 2005, 40% of Russia’s GDP, compared with a banking market worth 200% of GDP in EU countries. The Russian market has been growing by 9% a year in recent years.
The Ukrainian banking market is estimated at $70 billion, after growing 50% over the past six years.
Published by Globes [online], Israel business news - www.globes.co.il - on May 1, 2007
© Copyright of Globes Publisher Itonut (1983) Ltd. 2007