Erste Group and De Lage Landen International are establishing a strategic alliance for their vendor financing and leasing activities in Central and Eastern Europe.
A memorandum of understanding has outlined a potential transfer of DLL Hungary entities into Erste Bank Hungary, or one of its entities, to take place during early 2018.
The new partnership will target growth in the vendor finance market in Austria, Bosnia and Hercegovina, Croatia, Czech Republic, Hungary, Macedonia, Montenegro, Romania, Serbia, Slovakia, and Slovenia.
Karin Schmidt-Mitscher, head of Erste Group’s commercial real estate and leasing business, said: “Erste Group has been investing in Central and Eastern Europe for almost two decades now and has seen a growing demand in leasing and vendor financing.
“The overall estimated potential of this market is above €17 billion. By joining forces with DLL, one of the world’s largest leasing companies, we have the ambition to build new direct client relations and expand our portfolio. Furthermore, we will benefit from its know-how and vast network of global relationships.”
Erste Group is a leading financial services provider in the eastern part of the EU, with 47,000 employees serving more than 16 million customers in seven countries, covering Austria, Czech Republic, Slovakia, Romania, Hungary, Croatia, Serbia).
Marc Dierckx, chief financial officer of DLL (pictured above), said: “DLL has a clear interest in geographic expansion, growth and finding new ways to provide our vendor partners with access to markets where we do not have a physical presence.
“The planned alliance will allow DLL to leverage Erste Group’s extensive network and capabilities throughout Central and Eastern Europe. Most importantly, DLL vendor partners will gain access to competitive pricing and support in the countries where Erste has capabilities.”
As a global vendor finance company, DLL has more than €30 billion in assets and provides asset-based financial solutions in the agriculture, food, healthcare, clean technology, construction, transportation, industrial and office technology industries.
DLL partners with equipment manufacturers, dealers and distributors in more than 30 countries to support their distribution channels.
DLL is a wholly-owned subsidiary of Rabobank Group.