Eurobank Ergasias Services and Holdings S.A. (“Eurobank”) announces that it has reached an agreement with BNP Paribas Personal Finance for the acquisition by Eurobank Bulgaria AD (“Postbank”), its subsidiary in Bulgaria, of BNP Paribas Personal Finance Bulgaria.
Specifically, Postbank signed a put option letter for the benefit of BNP Paribas Personal Finance providing for the sale of BNP Paribas Personal Finance Bulgaria, based on the agreed terms.
Since 2007, BNP Paribas Personal Finance has developed a strong presence in the Bulgarian consumer finance market. BNP Paribas Personal Finance Bulgaria operates through a network of 44 branches. As of end of September 2022, the business had total assets of €450mn and deposits close to €100mn, and showed strong profitability.
This transaction strengthens Postbank’s position in the Bulgarian retail sector, while it also provides significant opportunities for cross-selling, given BNP Paribas Personal Finance Bulgaria’s clientele.
The planned transaction is subject to the consultation with the relevant employee representative bodies at BNP Paribas Personal Finance. It is expected to be completed during the first semester of 2023 subject to approvals by all competent regulatory authorities.
Mr. Stavros Ioannou, Eurobank’s Deputy CEO – Group COO & International Activities, said: “We are pleased to have reached an agreement with BNP Paribas Personal Finance, for the acquisition of BNP Paribas Personal Finance Bulgaria. This is a bolt on acquisition fully aligned with our strategy to further strengthen Postbank by adding valuable assets with significant upside. BNP Paribas Personal Finance has maintained a significant presence in the consumer finance sector in Bulgaria for many years, offering top-notch services to its clientele. The acquisition further strengthens Postbank’s position as a bank of choice for retail customers, providing service at the highest standards. We trust that after the completion of the deal, we will further improve customer experience and strengthen Postbank’s position in the Bulgarian market by joining our expertise with BNP Paribas Personal Finance Bulgaria’s excellent staff. This agreement is another proof that Eurobank delivers on its growth-focused, value-creating strategy in the region.”
Ms. Nesrin Gonin – CEO of Central Europe Region – BNP Paribas Personal Finance said: “We are delighted to announce this agreement with a strong and solid local player like Postbank. BNP Paribas Personal Finance Bulgaria is among the leading banks on the local market, focused on consumer financing with a long track record. This agreement gives a strong opportunity to our teams and their development, as well as for our partners and stakeholders. With this acquisition, Postbank will also benefit from expertise in data, digital processes with the best international consumer finance market practices we’ve been developing across Europe”.