Greek lender Eurobank (Eurobank Ergasias S.A.) on Thursday announced that it has concluded an agreement with another Greek systemic bank, Piraeus Bank, for the acquisition of the latter’s subsidiary in Bulgaria, Piraeus Bank Bulgaria AD (PBB), by its own subsidiary in the neighboring country, Postbank.
According to a press release issued by the parent bank in Athens, PBB, as of September 2018, had total assets of 1.7 billion euros, total loans of 820 million euros and deposits of 1.3 billion euros, operating in retail and, mainly, corporate banking through a network of 70 branches and more than 900 employees in Bulgaria.
“The Transaction strengthens Postbank’s position in the Bulgarian banking sector, with a pro forma market share in excess of 10 percent, ranking 3rd in terms of total loans,” the press release read.
The consideration for the shares amounts to 75 million euros and the transaction is expected to have at completion, a marginal impact of -14bps on Eurobank’s CET1 ratio, while accounting also for the expected synergies, the transaction is estimated to be capital accretive, Eurobank maintained.
