July 1 (SeeNews) - Greece's Eurobank has signed an agreement to merge its Serbian unit Eurobank Beograd with local sector player Direktna Banka, Eurobank said on Thursday.
Eurobank will control about 70% of the combined bank, while Direktna Banka's shareholders will own the remaining 30%, the Greek lender said in a statement.
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The combined bank, named Eurobank Direktna, will have total assets in excess of 2 billion euro, total equity above 300 million euro and pre-provision income and net income in excess of 50 million euro and 35 million euro, respectively, Eurobank said.
"We are pleased to have reached an agreement with the principals of Direktna for the merger of our two banks in Serbia and the creation of a much stronger, larger and dynamic local financial institution. This transaction is in line with Eurobank’s strategy to further expand its international activities and create additional value for its shareholders via targeted acquisitions, mergers or joint ventures," Eurobank deputy CEO Stavros Ioannou said.
Both parties have committed to a growth-oriented business plan, incorporating ambitious expansion targets that will allow the combined bank to finance the Serbian economy and grow profitably in the next few years, the Greek lender noted.
"This merger represents a clear opportunity for enhancing profitable growth that we have experienced with Direktna. We believe that Eurobank Direktna will have a unique opportunity to benefit from strong institutional background and size brought by our partners from Eurobank and from our deep understanding of our home market," Direktna Banka principals Andrej Jovanovic and Bojan Milovanovic said in the statement.
Completion of the transaction is subject to customary approvals by the competent regulatory and supervisory authorities and is expected to take place during the last quarter of 2021.
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