Business World

Thursday 20 September 2018

Cerberus leads €1bn deal for crisis-hit German bank

A group of investors led by Cerberus has agreed to acquire German regional lender HSH Nordbank from two German states for about €1bn, in what is at least the fifth purchase of a German bank in the past year that involved the US private-equity firm. Stock photo: Reuters
A group of investors led by Cerberus has agreed to acquire German regional lender HSH Nordbank from two German states for about €1bn, in what is at least the fifth purchase of a German bank in the past year that involved the US private-equity firm. Stock photo: Reuters

Eyk Henning and Steven Arons

A group of investors led by Cerberus has agreed to acquire German regional lender HSH Nordbank from two German states for about €1bn, in what is at least the fifth purchase of a German bank in the past year that involved the US private-equity firm.

The group of buyers - which includes US firm JC Flowers, Austrian lender Bawag, GoldenTree Asset Management and Centaurus Capital - will acquire 94.9pc of the shares, according to a statement posted Wednesday on the website of the state of Hamburg.

HSH is the latest of Cerberus's German bank deals, which include stakes in Deutsche Bank and Commerzbank, the two largest in the country. Bawag, which Cerberus and GoldenTree control after taking it public last year, bought Suedwestbank, a regional bank in Germany's prosperous southwest, and agreed to purchase mortgage lender Deutscher Ring Bausparkasse.

Cerberus has been a major buyer of Irish bank loans since the crash, including scooping up billions of euro of Nama loans.

For HSH, the sale ends years of uncertainty that started when in 2015 the European Union ordered the federal states of Hamburg and Schleswig-Holstein to sell the bank.

The states had poured billions into HSH after the credit crisis.

Bloomberg

Business Newsletter

Read the leading stories from the world of Business.

Also in Business