Piraeus Bank acquires the Greek operations of Cypriot banks

The branches of the three Cypriot banks in Greece will open on Wednesday and all the operations will be run in the normal course of business. Customer deposits with the Greek branches of Bank of Cyprus, Cyprus Popular Bank and Hellenic Bank are not subject to any bank levy or haircut that has been agreed in Cyprus.
The agreement follows the proposal submitted in response to the invitation addressed to Greek banks by the Greek Government, the Bank of Greece and the Hellenic Financial Stability Fund (HFSF), with regard to the acquisition of the branch network and operations of the three Cypriot banks in Greece.

According to a press release, the transaction ensures the stability of the Greek banking system, provides assistance to Cyprus in relation to the resolution of the crisis and secures depositors, customers and employees of the three Cypriot banks in Greece post recent uncertainty.
Following the completion of the transaction, Piraeus Bank Group will have consolidated total assets of €95 billion, 1,660 branches and 24,000 employees.

The press release notes that Piraeus Bank Group has a long and proven experience of seamless and swift integration and has successfully executed more than 15 acquisitions and mergers in the last 15 years, which minimizes any implementation risk, adding that Piraeus Bank will carefully manage the integration of the Greek operations of the three Cypriot banks and simultaneously deliver value and opportunities for all of its stakeholders.
The transaction represents another important step towards the restructuring of the Greek banking system, in which Piraeus Bank has participated from the very beginning as a core pillar, contributing to the effort to rebalance the Greek economy.