Greek Eurobank Takes over Alpha Bank’s Branch Network in Bulgaria
Monday, 20 July 2015
Bulgaria’s Postbank, a subsidiary of Greece’s Eurobank, has announced the acquisition of the Bulgarian branch network of Alpha Bank, another Greek lender.
With the acquisition, "Postbank will strengthen its market position in the Bulgarian banking sector and expand its customer base in both the retail and corporate business banking segments,” the bank said in a statement on Friday.
Postbank said the deal, which is expected to be completed by the end of the year pending regulatory approval, is fully aligned with Alpha Bank’s restructuring plan, as approved by the European Commission last year, and its commitment to focus its operations only on its core markets.
The transaction “also serves ideally Postbank’s strategy to expand its operations and further enhance its presence in the Bulgarian market”.
The memorandum of understanding that was signed on Friday, covers the entire banking operations of Alpha Bank Bulgaria, which comprise 254 million euros in deposits and gross loans worth 410 million euros.
Following the completion of the deal, Postbank will become the fourth largest bank in Bulgaria by deposits and loans with a network of more than 200 locations in the country, it said.