German bank deal
In what is being called the biggest German bank deal in six years, Hypo Real Estate (HRE) announced it would buy Depfa Bank in a $7.8 billion deal. HRE is one of Germany's largest lenders to the construction industry and landlords, while Irish-headquartered but mostly German-oriented Depfa is a major player in public fianance, an area where HRE has a smaller presence. Depfa is already Europe's #2 loan business for public infrastructure projects after Belgium-based Dexia SA. Depfa loans money to fun railways, transit systems, and toll roads.
HRE was a spinoff from HVB Group in 2003, and according Bloomberg News, has done well in recent years as the German economy has recovered. Depfa has a US branch, First Albany, a New York-based municipal bond company.
Depfa is also a fairly new company, privatized by the German government in 2002 and moved to Ireland (for tax purposes) shortly after. Both companies have solid international presences.
One thing to note. just a small step in the consolidation of European banking, but the sad state of the dollar makes it quite a big deal in dollar terms. But with the segment of private and public construction banking, HRE now a major player.
10:35:30 PM 
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