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Piraeus Bank to acquire Greek operations of three Cypriot banks for EUR524m

Greek's Piraeus Bank has inked an agreement to purchase all of the Greek deposits, loans and branches of Bank of Cyprus, Cyprus Popular Bank (CPB) and Hellenic Bank, including their Greek subsidiaries, for a total cash consideration of €524m.

The agreement follows the proposal submitted in response to the invitation addressed to Greek banks by the Greek Government, the Bank of Greece and the Hellenic Financial Stability Fund (HFSF), with regard to the acquisition of the branch network and operations of the three Cypriot banks in Greece.

The acquisition of more than 300 branches of Cyprus Bank, Cyprus Popular Bank (CPB) and Hellenic Bank in Greece is part of global efforts to avoid default in Cyprus, which may have the potential to affect other eurozone members.

Piraeus Bank stated in a press release that the transaction represents another important step towards the restructuring of the Greek banking system, in which it has participated from the very beginning as a core pillar, contributing to the effort to rebalance the Greek economy.

The deal will ensure stability of the Greek banking system and provides assistance to Cyprus with regard to the resolution of the crisis and secures depositors, customers and employees of the three Cypriot banks in Greece, especially after the recent uncertainty.

Upon completion of the transaction, Piraeus Bank will have consolidated total assets of €95bn, 1,660 branches and 24,000 employees.

Piraeus Bank has executed more than 15 acquisitions and mergers in the last 15 years.

Barclays Bank through its investment bank, Deutsche Bank London branch, and Lazard Frères served as financial advisors to Piraeus Bank for the transaction.

At the end of July 2012, Piraeus Bank purchased the ‘healthy’ part of Agricultural Bank (selected assets and liabilities) and three months later, the bank signed an agreement with Societe Generale for the acquisition of SocGen’s total stake (99%) in Geniki Bank.

Established in 1916, Piraeus Group had pro-forma total assets summed up to €78bn, net loans €44bn and customer deposits €35bn at the end of September 2012.

Piraeus Bank has a workforce of 18,800 staff, with the entire branch network numbers 1,348 units, with a presence in 10 nations including Greece and serves approximately six million customers.