articles | 02 February 2024

Eurobank’s acquisition of Hellenic Bank approved

The Commission for the Protection of Competition (CPC) approved on Friday Eurobank’s bid to acquire Hellenic Bank’s share capital. The decision was taken with a majority vote in favour of the acquisition, an announcement by the CPC said.

It specified the acquisition was compatible with market competition laws. The developments followed a detailed investigation which began in October 2023, amid concerns raised over potential competition and market concentration issues. Nonetheless, the CPC ruled on Friday that any doubts were dispelled, after the investigation included additional insights from entities involved as well as industry stakeholders.

In August, international credit rating agency Fitch published an analysis piece over the matter, highlighting its expectation that the integration would be smooth “despite execution risks entailed in a relatively large acquisition, given the complementary nature of the banks’ business and credit profiles, and Eurobank’s already good knowledge of the Cypriot market.” Fitch’s statement was perceived as largely positive, as it said that if the acquisition was completed, this would “enhance Eurobank’s business model, increase geographical diversification, and result in a better balance between retail and corporate banking activities.”

Friday’s decision paves the way for Eurobank to move forward with Hellenic Bank’s capital shares acquisition, after the CPC greenlighted the bid’s alignment with competitive market practices.

The full details of the CPC’s decision will be made available in the Republic’s official gazette and on the CPC’s official website, ensuring transparency and public access to the decision’s rationale.


Source: Cyprus Mail

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