Greek lender Eurobank to absorb Piraeus Bank Bulgaria

Source: Xinhua| 2018-11-08 06:45:19|Editor: yan
Video PlayerClose

ATHENS, Nov. 7 (Xinhua) -- Greek lender Eurobank announced on Wednesday here the completion of its agreement with Greece's Piraeus Bank for the acquisition of Piraeus Bank Bulgaria (PBB) by Eurobank's Bulgarian arm.

The transaction renders Eurobank Bulgaria AD, known as Postbank, the third biggest bank in Bulgaria.

The price agreed for the buyout of PBB is 75 million euros (85.5 million U.S. dollars), Eurobank confirmed.

The absorption of PBB by Postbank will enhance the Eurobank subsidiary's position in Bulgaria, taking its market share above 10 percent.

When the takeover is completed, Postbank will have total assets in excess of 5 billion euros, and the transaction will only have a marginal impact on the Eurobank group's capital.

According to September 2018 data, PBB's assets add up to 1.7 billion euros, its total loans come to 820 million euros and its deposit amount to 1.3 billion euros. It has a network of 70 branches across Bulgaria and employs over 900 people.

The transaction is pending the approval of the competent regulators, and is expected to be completed in the first quarter of 2019. (1 euro = 1.14 U.S. dollars)