Germany: Bawag Offloads Start:Bausparkasse to Wüstenrot
In an unexpected move, the Austrian financial powerhouse Bawag has agreed to sell its German subsidiary, Start:Bausparkasse AG, to Wüstenrot Bausparkasse AG, a division of the W&W Group. The transaction, subject to approval from the German antitrust and regulatory authorities, is expected to be finalized by 2024. Neither party has disclosed the purchase price, as announced by Bawag post-market hours on a recent Friday.
At the end of 2022, Start:Bausparkasse AG held assets of approximately €0.5 billion. Bawag confirmed that its German-based subsidiary, while sharing the similar name, remains an independent entity from its Austrian counterpart, which remains within Bawag's Retail & SME business segment.
Germany-based Wüstenrot Building Society will be the new owner of Start:Bausparkasse AG after the acquisition from Bawag. Wüstenrot Bausparkasse AG is part of the W&W Group, and the German branch's acquisition is pending approval from the antitrust and regulatory authorities.
According to financial sources, Start:Bausparkasse AG in Germany boasted €0.5 billion in assets prior to the deal. Bawag has publicly affirmed the independence of its Hamburg-based subsidiary from the Austrian division, which continues to operate under Bawag's Retail & SME business segment.
The Wüstenrot and W&W Groups, with a presence in both Germany and Austria, are venturing further into the realms of finance and construction with this acquisition.
For context, the Wüstenrot Group, a retail-oriented financial conglomerate, includes Bausparkasse Wüstenrot AG (insurance), Wüstenrot Bank AG, and other entities. Their primary focus is on retail financial products, including savings, loans, retirement schemes, and insurance.
Strategic Expansion and Implications
The acquisition of Start:Bausparkasse AG by Wüstenrot Building Society can be understood in the context of the Wüstenrot Group’s expansion strategy and its efforts to digitalize and diversify its customer base. The group intends to provide a comprehensive range of financial services, including banking, building society, and insurance products.
Digitalization and Customer Focus:
The acquisition of Start:Bausparkasse AG by Wüstenrot Building Society shows the group's dedication to digital advancements while maintaining human advisory services through a nationwide network. The objective is to present customers with a comprehensive, one-stop solution for financial services.
Asset Impact:
With EUR 11.3 billion in total assets and EUR 6.9 billion in Bausparkasse Wüstenrot AG assets at year-end 2023, the acquisition can influence the group's asset distribution. However, without specific information on the purchase price, it is difficult to predict the exact asset impact.
Employee Impact:
The Wüstenrot Group employs 1,290 full-time staff, with Bausparkasse Wüstenrot AG accounting for 400 employees in Austria. The acquisition could have implications for the group's overall employee count.
Regulatory Approval Process:
The approval process for acquisitions generally involves complying with regulatory bodies like the Austrian Financial Market Authority (FMA) and the European Central Bank (ECB). However, the deal's details, including the purchase price and other conditions, are not stated in the available documents.
With these considerations in mind, investors can monitor the progress of the deal as more information becomes available. The expansion of the Wüstenrot Group through the acquisition should be considered in the context of their ongoing strategy to diversify their offerings and provide comprehensive financial services to their customers.
