With the next acquisition, postbank became a consolidator of Greek banking operations on the Bulgarian market after UBB was under the control of the Belgian KBC
© Cvetelina Belutova
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Postbank buys Piraeus Bank for 75m euros after the headquarters of the two institutions in Athens signed an agreement on the finalization of a purchase contract. BACB Cvetelina Borislavova and Investbank Petia Slavova also participated in the competition for the purchase of information with capital information, as well as the fund that is active in the region.
The sale of a small bank lasted for months due to pressure from creditors of their Greek parent banks to separate with non-strategic assets along the debt crisis in the southern neighbor. The result of the deal will be to improve the position of Postbank, which is currently the fifth largest asset in the Bulgarian market. The stated intention of the buyer is to merge and thereby become number 3 on the market property. After the transaction, Postbank will remain the only Greek bank in the country.
Following the acquisition of Bulgaria's Alfa Bank in 2016, Postbank consolidated the last remaining domestic market by Greek business in the sector. This was expected logically in view of the related corporate culture and institution's clientele, which does not represent a significant difficulty in the upcoming merger.
In order to do this, regulatory approval is obtained, and in positive development, the agreement will be confirmed in the first half of 2019.
Since the first nine months of this year, Postbank (which operates through Eurobank Bulgaria) has assets of BGN 8.1 billion, and Piraeus Bank Bulgaria has assets of 3.1 billion, and it is expected that by joining it will improve the position of Postbank bank in the top 5 banks , where competition has intensified rapidly over the last two years due to concentration. The forecasts are that Postbanka's total assets after the contract will exceed 5 billion euros, which will lead the institution from Fibank, and perhaps with UBB, which recently ceased to be Greek after it was bought by the Belgian KBC.
"After the acquisition, Eurobank Bulgaria will be the third largest bank in the country," Stavros Ioannou, deputy director general of Greek Eurobank, said in a press release. "Acquisition follows Eurobank's strategy of focusing on the expansion of its international markets, which it believes is important, how is it, to serve our customers better, to support the Bulgarian economy and Greek business in our neighboring country," added the senior manager of the Greek bank.
As expected, the synergies after the deal will generate an income of 150 million euros before the provision and a net profit of 70 million euros. Currently, Piraeus Bank employs more than 900 people, and the branch network has 70 offices across the country. It is unclear whether the agreement also includes a bad credit portfolio transfer portfolio of 126 million euros, awaiting a solution for the new owner, and is also interesting, but the collection of agencies.