Soc Gen eyes Emporiki takeover

Societe General (Cyprus) is reported to be engaged in advance negotiations to buy the 12 branches of Emporiki Bank in Cyprus, in an attempt to gain a faster foothold in the highly competitive banking market here.

Informed sources told the Financial Mirror that a due diligence report is currently being made to access the financial strength of Emporiki in Cyprus, but sources from both sides said the negotiations and the bargaining are being done directly between the head offices of both banks.

“Everything is being done directly between Paris (for Soc Gen) and Athens (for Emporiki). People from both sides in Cyprus are not involved,” said the source, who nevertheless pointed out that the final price tag has not yet been agreed adding that if it is too much, then the negotiations may collapse.

“It all depends on the price, “ said the source. French experts from Paris are believed to be combing through Emporiki Bank (Cyprus) accounts to determine the price at which the head office in Paris will be willing to make an offer.

The same source confirmed an earlier report by Simerini newspaper regarding the negotiations, adding that direct contact between the two sides has been going on for three months now.

“We managed to keep it under the wraps, but it finally got out.”

Emporiki Bank, with 12 branches in Cyprus is believed to have a 0.8% share of local bank deposits amounting to CYP 8.5 bln, and just under 1% share of local loans amounting to CYP 9.3 mln, according to Stockwatch estimates. Soc Gen is believed to have a 0.5% market share.