With the next procurement, Postbank became a combination of the Greek banking business on the Bulgarian market after UBB passed under the control of Belgium KBC
© Tsvetelina Belutova
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Postbank is buying a Piraeus Bank for € 75m after the headquarters of both organizations in Athens signed an agreement to complete the procurement agreement. In the competition for buying proposals with information from Capital also takes part BACB from Tsvetelina Borislavova and Investbank from Petya Slavova, as well as a fund that is actually in the region.
The sale of the small bank has been running for months due to pressure from their mother's mother's creditors share with non-statutory assets alongside the debt crisis in the southern neighbor. The result of the agreement will be an improvement in the Postbank position, which is the fifth largest asset in the Bulgarian market at present. The designer's intention is to merge and therefore become No. 3 on market assets. After the transaction, Postbank will continue to be the only Greek bank in the country.
After buying Alfa Bank Bulgaria in 2016, Postbank combined the last remainder in the local market by a Greek business in the sector. This is reasoned and reasoned given to the similar corporate culture and corporate customers, which do not pose any significant difficulties in the forthcoming combination.
In order to proceed with it, regulatory approvals can be obtained, and in positive development the agreement will be confirmed during the first half of 2019.
From the first nine months of this year, Postbank (operating through Eurobank Bulgaria) has assets for BGN 8.1 billion and Piraeus Bank Bulgaria has assets of 3.1 billion, and the merger is expected to improve Postbank bank positions are in the top 5 banks, where the competition has increased significantly over the last two years due to concentration. The prospect is that the total Postbank assets after the bargain will be more than EUR 5 billion, which will lead the organization in front of Fibank and perhaps UBB, who recently ceased to be Greek after it win KBC Belgium
"After the acquisition, Eurobank Bulgaria will be the third largest bank in the country," said Stavros Yoannou, Deputy CEO of Eurobank Greek, in a press release. "The acquisition follows the Eurobank strategy to focus on expanding its international markets, which is considered important, as we are to serve our customers better, to support the Bulgarian economy and Greek business in our neighboring country. "added Greek bank senior manager.
As expected, synergies after the agreement will generate revenue of € 150 million before provisions and a net profit of € 70 million. The Piraeus Bank currently employs more than 900 people, and the branch network has 70 offices across the country. It is not clear whether the bargain also includes the transfer of a bad loan portfolio of EUR 126 million, which is waiting for a solution to the new owner and is also of interest, but by collecting agencies.