Vienna-based Addiko Bank recently announced a significant transaction involving Serbian company Diplomat Pay, which entered an agreement to conditionally purchase 1,340,207 shares (6.87% of the capital) from Alta Pay Group. This move follows previous announcements by Nova Ljubljanska Banka (NLB) expressing its intention to acquire control over Addiko Bank, and Agri Europe Cyprus Ltd. showing interest in acquiring a 17% stake. These developments come at a time when many believed the era of bank mergers in the domestic market had ended, particularly as the number of banks in Serbia has significantly decreased over the past two decades.
Ownership stakes and strategic interests
Agri Europe already holds approximately 9.99% of Adiko Bank’s capital. Alta Group acquired around 30% of the shares in Addiko Bank AG and has applied for permission to become the largest shareholder. Although NLB currently holds no shares in Addiko, it has indicated a willingness to purchase shares at 20 euros each, causing Addiko’s shares to jump 5% in Vienna upon this announcement.
Market dynamics and consolidation trends
Ismail Musabegović, a professor at the Banking Academy, attributes the high interest in Addiko Bank to the ongoing consolidation trend in Serbia’s banking sector. He explains that Serbia’s market is relatively small for the current number of banks, predicting further market consolidation as larger banks absorb smaller ones. He notes that Addiko Bank is particularly attractive because it occupies a necessary segment of the market that larger banks are eager to acquire.
Musabegović emphasizes that systemic banks are leading the market consolidation, reinforcing their presence by acquiring smaller banks. This trend is expected to continue, reducing the number of operational banks in Serbia from 50 to potentially less than 10.
Historical context and future outlook
Two decades ago, Serbia had 47 banks; now, only 20 remain. Experts had long suggested that the country had too many banks for its size. The National Bank of Serbia has noted that changes in bank ownership structures are primarily driven by parent banks and global consolidation trends within banking groups.
Addiko Bank, the successor of Hypo Alpe-Adria Bank, which it took over in 2016, continues to evolve. The bank recently announced plans to launch a digital bank in Romania, reflecting its broader strategy to expand digital banking services in Central and Southeast Europe (CSEE).
Addiko Group’s market position
Specializing in retail and small and medium-sized enterprises, Addiko Group serves over 828,000 clients across CSEE through a network of 197 branches and digital services. The bank’s strategic importance and its regional presence make it a valuable asset in the eyes of potential investors like NLB and Agri Europe.
Conclusion
The ongoing struggle for control over Addiko Bank highlights the dynamic nature of the banking sector in Serbia and the broader CSEE region. As the market continues to consolidate, strategic acquisitions such as these will shape the future landscape of banking in the region, with major players seeking to strengthen their positions through targeted investments and expansions.
