The Croatian competition authority, AZTN, has granted approval for the merger between Hrvatska poštanska banka d.d. and Croatia banka d.d. This merger involves the acquisition of direct control by Hrvatska poštanska banka over Croatia banka.

The complete merger application was submitted on June 17, 2026, in accordance with the Croatian Competition Act. AZTN published a public call for comments on June 18, 2026, but received no objections by the deadline of June 29, 2026.

This merger primarily affects the credit institutions market in Croatia, particularly in the areas of household deposits, deposits from non-financial enterprises, and loans to households and non-financial enterprises.

Hrvatska poštanska banka and Croatia banka are universal banks providing banking and financial services in Croatia. HPB is the fifth largest bank by total assets, holding a market share of approximately 5 to 10 percent, while Croatia banka ranks seventeenth with a market share of less than 5 percent.

The merger is not expected to alter the market structure significantly, as the post-merger market share of HPB remains within the same range. The concentration will maintain moderate market shares across various segments, including household deposits and loans.

AZTN noted that the Croatian credit institutions market is characterized by the presence of several large banks, with the main competitors being Zagrebačka banka, Privredna banka Zagreb, and Erste & Steiermärkische Bank, which together hold over half of the market.

The transaction is seen as a consolidation in the banking sector, expected to strengthen HPB's competitive position and enhance competitive pressure on the largest banks in Croatia. However, the overall structure of the banking sector will not change significantly as a result of this merger.

Given that the merger does not significantly affect market competition and does not indicate the creation or strengthening of a dominant position, AZTN concluded that the merger is permissible under the Croatian Competition Act.