With the next acquisition, Postbank became the consolidator of the Greek banking business on the Bulgarian market after BBB passed Belgian KBC
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Who wants to buy the Piraeus bank
The security of the candidates is BSCB by Tsvetelina Borislavova, Investbank by Petya Slavova and the Greek owner of Postbank
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At a time of unification
NBG has already selected KBC for the sale of its Bulgarian bank and will quickly announce a deal by the end of the year
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The new Greek bank
Nine months after the Euro 1 agreement, Alfa Bank began its business transfer to Postbank, creating the fourth largest player in the Bulgarian banking market
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Postbank buys Piraeus Bank for 75 million euros after the headquarters of the two institutions in Athens signed an agreement to complete the acquisition contract. The BACB for Tsvetelina Borislavova and Investbank in Petya Slavova, as well as an active fund in the region, also participated in the competition for the acquisition of information from Capital.
Small bank sales have been functioning for months because of the pressure of Greek parent creditors to share non-strategic assets with the debt crisis in the southern neighborhood. The result of the transaction will be an improvement in Postbank's position, which is currently the fifth largest asset on the Bulgarian market. The declared intention of the buyer is to merge and thus become No. 3 on market assets. After the transaction, Postbank will remain the only Greek bank in the country.
After the purchase of Alfa Bank Bulgaria in 2016, Postbank consolidated the last remaining local market by the Greek business sector in the sector. This has been expected and logical given the similar corporate culture and institutional clientele, which do not pose significant difficulties in the future merger.
In order to continue this, regulatory approvals need to be obtained, and in positive development the agreement will be confirmed in the first half of 2019.
In the first nine months of this year, Postbank (which operates through Eurobank Bulgaria) has assets for 8.1 billion lei and Piraeus Bank Bulgaria has assets of 3.1 billion euros, and the merger will improve Postbank positions a bank of the first 5 banks, where competition intensified sharply in the past two years due to concentration. The forecasts are that Postbank's total assets after the deal will exceed € 5 billion, which will lead the institution ahead of Fibank and perhaps UBB, which recently ceased to be Greek after acquiring Belgian KBC.
"After acquisition, Eurobank Bulgaria will be the third bank in the world," said Stavros Yoannou, Deputy General Manager of Eurobank in Greece, in a press release. "The acquisition follows Eurobank's strategy to focus on the expansion of its international markets, which it considers important in order to better serve our clients, in order to support the Bulgarian economy and the Greek business in our neighboring country", added the senior manager of the Greek bank.
As expected, synergies after the agreement will generate revenue of EUR 150 million before provisions and a net profit of EUR 70 million. At present, Piraeus Bank employs over 900 employees, and the branch network has 70 offices across the country. It is unclear whether the transaction also includes a 126 million-euro bad credit portfolio transfer that awaits a solution for the new owner and is of interest, but by the collection agencies.