Postbank will buy Pireus for 75 million euros

More on the topic

Who wants to buy Piraeus Bank

Candidates are BSCB Tsvetelina Borislav, Investbank Petya Slavova and Greek Postbank

June 15, 2018


At the time of unification

NBG has already selected KBC for the sale of its Bulgarian bank and will announce an agreement by the end of the year

December 16, 2016

New Great Greek Bank

Nine months after the conclusion of the Euro 1 contract, Alfa Bank launched its corporate transfer to Postbank, creating the fourth largest player in the Bulgarian banking market

March 6, 2016

Postbank buys Piraeus Bank for 75 million euros after the headquarters of both institutions in Athens signed an agreement to complete the acquisition agreement. BACB Tsvetelina Borislavová and Investbank Petya Slavová, as well as a fund operating in the region, also took part in the tender for buying information on capital.

Sales of small banks are going through months due to the pressure of their Greek parent banks' creditors to break up with non-strategic assets in addition to the debt crisis in the southern neighborhood. The result will be an improvement in Postbank's position, which is currently the fifth largest asset in the Bulgarian market. The buyer's goal is to merge, making it No. 3 on market property. After the transaction, Postbank remains the only Greek bank in the country.

Other acquisitions

After buying Alfa Bank Bulgaria in 2016, Postbank has made the entire remaining part of the local market in the Greek market in this sector. This was expected and was logical, given the similar corporate culture and institutional clientele, which does not pose any significant difficulties in the upcoming merger.

In order to continue with this, regulatory approval is needed and positive developments will be confirmed by the agreement in the first half of 2019.

From the first nine months of this year, Postbank (which operates through Eurobank Bulgaria) has assets of 8.1 billion, and Piraeus Bank Bulgaria has assets of 3.1 billion, and the merger is expected to improve the position of Postbank in the top five banks, where concentration has worsened sharply over the past two years. It is expected that the total assets of Postbank after agreement will exceed 5 billion EUR, which will lead the institution before the Fibank and perhaps UBB, which recently ceased to be Greek after it acquired the Belgian KBC.

"After the acquisition, Eurobank Bulgaria will be the third largest bank in the country," said Stavros Yoannou, Deputy CEO of Greek Eurobank, in a press release. "The acquisition is governed by the Eurobank strategy, which focuses on expanding its international markets, which it considers important because it is better for us to serve our customers to support the Bulgarian economy and Greek business in our neighboring country", added the senior manager of the Greek bank.

Expected effects

As expected, the synergy will bring € 150 million in earnings before the reserves and a net profit of € 70 million. At present, Piraeus Bank employs more than 900 employees, and its branch network has 70 branches across the country. It is unclear whether the agreement also includes a 126m-euro bad credit portfolio that expects a new owner and is also interesting, but a collection agency.

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