Eurobank bids to buy Piraeus Bank Bulgaria
Five suitors have tabled bids for the acquisition of Piraeus Bank Bulgaria, the relatively small subsidiary of the Greek lender in the neighboring country. They are four Bulgarian bidders, along with Greece’s Eurobank.
The departure of Piraeus from Bulgaria and all other foreign markets forms part of its ongoing capital strengthening plan and the restructuring commitments the bank’s management has made to European authorities.
Piraeus will examine the offers in the next couple of weeks and the final decisions are expected by the end of the month. If all goes well and the necessary approvals are issued, the transaction will take place in early 2019.
Piraeus has a small presence in Bulgaria, as its subsidiary’s network numbers 75 branches and has assets of 1.5 billion euros. Eurobank, on the other hand, maintains a strong presence in the neighboring country through its Postbank subsidiary, which boasts 174 retail branches and 10 business centers. It also has deposits of 3.2 billion euros, loans of 2.5 billion and total assets of 3.7 billion. If Eurobank does acquire Piraeus Bank Bulgaria, Postbank will be placed among the country’s top three lenders.
