Greek lender Eurobank Ergasias, through its Bulgarian unit Postbank, has agreed to acquire Piraeus Bank Bulgaria (PBB), the Bulgarian arm of local peer Piraeus Bank, in a deal worth €75m ($85.6m).
PBB offers retail and corporate banking services and employs over 900 staff across 70 branches. The business managed €1.7bn in assets at the end of September 2018.
The acquisition will boost Postbank’s assets to more than €5bn. It is also expected to offer Postbank a market share of more than 10% in Bulgaria’s banking industry and a third ranking in terms of total loans.
Eurobank said that the takeover will have a marginal impact on its CET1 ratio. The Greek bank also expects the deal to be capital accretive.
The deal is slated to close in the first quarter of next year, subject to regulatory nod.
Eurobank deputy CEO Stavros Ioannou said: “The acquisition is in line with Eurobank’s strategy to focus on the expansion of its international activities in markets which are deemed core, such as the Bulgarian one.
“Following the acquisition, Eurobank Bulgaria will be the 3rd largest bank in the country. Our goal is to better serve our customers and depositors, to support, through new financing, the Bulgarian economy, as well as the Greek corporates in the neighbouring country.”
Two years back, Postbank acquired another Greek lender Alpha Bank’s Bulgarian branch.