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Postbank buys Piraeus for 75 million euros



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Who wants to buy Piraeus Bank

Safe Candidates are Tsvetelina Borislavova BSCB, Petja Slavova Investbank and Greek Owner of Post Bank

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UBB:

At the time of the agreement

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The new big Greek bank

Nine months after the Euro 1 deal, Alfa Bank began to transfer Postbank to the fourth largest player on the Bulgarian market

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Postbank buys Piraeus Bank for 75 million euro after the headquarters of both Athens authorities has signed a deal to complete the acquisition deal. In the competition for the purchase with information from "Capital" also participated Tzvetelina Borislavova BECB and Petja Slavova Investbanka, as well as an active fund in the region.

The sale of a small bank has taken months, because Greek parent bankers are forced to split unsuspecting assets alongside the debt crisis in the Southern Neighborhood. The deal will result in an improvement in Postbank, which is currently the fifth largest asset on the Bulgarian market. The buyer's stated intention is to merge and thus become the 3rd place on the market. After the transaction Postbank will remain the only Greek bank in the country.

Another purchase

Following the acquisition of Alfa Bank in Bulgaria in 2016, Postbank consolidated the last remaining domestic market by Greek business in this sector. This was expected and logical, given the similarity of corporate culture and institutional customers, which do not cause significant difficulties in future mergers.

In order to continue this, regulatory approvals should be obtained, and in the case of positive developments, the transaction will be approved in the first half of 2019.

Starting from nine months of this year, Postbank (operating through Eurobank) has assets of 8 billion BGN and Piraeus Bank in Bulgaria has 3.1 billion assets, and the merger will improve post-bank positions in Top 5 banks where competition over the past two years has grown rapidly due to concentration . Predictions indicate that Postbank's total assets after the transaction will exceed € 5 billion, which will lead the institution to the FBI and possibly UBB, which recently ceased to be Greek after acquiring Belgian KBC.

"After the acquisition, Eurobank Bulgaria will be the third largest bank in the country," commented Stavros Yoannou, Managing Director of Eurobank. "The acquisition is in line with Eurobank's strategy, which aims to focus on the expansion of international markets that it considers important as our goal is to better serve our customers, support the Bulgarian economy and the Greek business in our neighboring country," added the senior manager of the Greek bank.

Expected effects

Synergies for the transaction are expected to result in revenue of EUR 150 million before provisions and a net profit of EUR 70 million. Currently, Piraeus Bank employs more than 900 people, and its branch network has 70 offices throughout the country. It is not clear whether the transaction also includes a bad credit portfolio transfer of € 126 million, which awaits the solution for the new owner and is also interested in the facility, but which is collected by the agencies.

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