Eurobank to buy BNP Paribas Bulgarian retail unit

The Greek bank will carry out the transaction through its local unit Eurobank Bulgaria, which operates under the Postbank brand, it said in a press release.

Based on the agreed terms, Postbank signed a put option related to the purchase of BNP Paribas Personal Finance Bulgaria.

The deal is expected to reduce by 22 basis points Eurobank’s common equity tier 1 (CET1). The Greek group, however, expects to recover the drop through high profitability and synergies.

The acquisition is subject to consultation with the relevant employee representative bodies at BNP Paribas Personal Finance and regulatory approvals. Completion is expected in the first quarter of 2023.

As of September 30, BNP Paribas Personal Finance Bulgaria held total assets of 450 million euro ($475.2 million), net borrowings of 406 million euro and deposits of nearly 100 million euro.

BNP Paribas Personal Finance is a fully-owned subsidiary of French BNP Paribas Group.

($ = 0.9469 euro)