Eurobank: Agreement with BNP Paribas for the acquisition of its Bulgarian subsidiary

An agreement was reached between Eurobank and BNP Paribas for the acquisition of the latter’s Bulgarian subsidiary.

In particular, according to a relevant announcement, Eurobank Ergasias Services and Holdings (“Eurobank”) announces that it has agreed with BNP Paribas Personal Finance for the acquisition by its subsidiary in Bulgaria, Eurobank Bulgaria AD (“Postbank”) of BNP Paribas Personal Finance Bulgaria.

In particular, Postbank signed a letter granting BNP Paribas Personal Finance the right to sell (put option) BNP Paribas Personal Finance Bulgaria based on agreed terms.

Empowerment

According to the same announcement, since 2007, BNP Paribas Personal Finance has built a strong presence in the Bulgarian consumer credit market. It operates through a network of 44 branches and at the end of September 2022 had total assets of €450m and deposits close to €100m, with strong profitability.

This transaction strengthens Postbank’s position in Bulgarian retail banking, while at the same time creating significant cross-selling opportunities, given BNP Paribas Personal Finance Bulgaria’s customer base, which exceeds 270 thousand customers.

The planned transaction is subject to consultation with BNP Paribas Personal Finance’s employee representative bodies and is expected to be completed in the first half of 2023 subject to receipt of the required regulatory approvals.