Bank Millennium has agreed to acquire a 99.79% stake in Euro Bank, the Polish retail banking unit of French banking group Societe Generale in a cash deal worth PLN1.83bn ($482.8m).

The acquisition is said to add 1.4 million new clients to Bank Millennium’s portfolio and more than 200 new cities to the bank’s coverage.

“In line with Strategy 2020, the acquisition of eurobank will allow Bank Millennium to increase the size of its consumer lending segment as well as the overall importance of this business within the Group,” Bank Millennium said in a statement.

Bank Millennium will fund the deal using its internal resources. It expects PLN650m of synergies over the next five years from the transaction.

The deal is expected to be wrapped up in the second quarter of next year, subject to regulatory nod.

Societe Generale expects the transaction to increase the group CET 1 ratio by 8 basis points. The transaction will also reduce the bank’s risk-weighted assets by $2.3bn.

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At the same time, the French lender announced its commitment to retain corporate and investment banking services in Poland.

Societe Generale Group deputy CEO in charge of international retail banking activities, financial services and insurance Philippe Heim said: “The sale of Euro Bank is a further step in the execution of Societe Generale’s Strategic and Financial plan “Transform to Grow”, whose primary objectives are to focus and develop its presence on markets and activities with a critical size and the potential for generating synergies with other Group businesses.”