Erste Group Bank has bought a 49% stake in Santander's Polish bank for around 6.8 billion euros ($7.7 billion), turning Austria's largest lender into one of the most important banks in Poland and freeing up billions for Santander .

Erste Group Bank AG agreed to buy much of Banco Santander SA’s operations in Poland for about €7 billion ($7.9 billion), marking its largest deal ever.

Erste will fund the all-cash purchase entirely with "internal resources", by cancelling its planned €700m share buyback.