ECONOMY

Piraeus Bank completes acquisition of Cypriot bank units in Greece for 524mln euros

Piraeus Bank became Greece’s second largest lender on Tuesday after confirming that it had completed the acquisition of the units of three Cypriot banks: Bank of Cyprus, Cyprus Popular Bank (Laiki) and Hellenic Bank for just over half a billion euros.

“Piraeus Bank signed an agreement today to acquire all of the Greek deposits, loans and branches of Bank of Cyprus, Cyprus Popular Bank (CPB) and Hellenic Bank, including loans and deposits of their Greek subsidiaries (leasing, factoring and the Investment Bank of Greece (IBG)), for a total cash consideration of €524mn,” the Greek lender said in a statement.

“The transaction ensures the stability of the Greek banking system, provides assistance to Cyprus in relation to the resolution of the crisis and secures depositors, customers and employees of the three Cypriot banks in Greece post recent uncertainty,” added Piraeus.

It was agreed as part of Cyprus’s bailout deal with the troika that bank units in Greece would pass to a local lender as part of the effort to reduce the island’s financial sector and prevent any contagion spreading.

The completion of the deal, which was first announced on Friday, means that Piraeus Bank will have consolidated total assets of 95 billion euros, 1,660 branches and 24,000 employees.