The Merger of Aplha Bank and Eurobank EFG to Create the third Biggest Bank in Bulgaria

The Eurobank EFG-Alpha Bank merger will create the 3rd largest bank in Bulgaria. Total combined assets are about EUR 4 billion. As of end-June 2011, Eurobank EFG’s Postbank has total assets of BGN 5.85 billion, while Alpha Bank Bulgaria’s assets are BGN 2.08 billion.

The two banks said in a joint statement on Monday that "Consolidation of two highly complementary private sector banks with substantial synergies and a clear strategic rationale which will play a vital role in the economic recovery of Greece."

According to analysts, Eurobank will be paying a 27.5% premium for Alpha Bank shares, although technically Alpha will be absorbing Eurobank under Greek merger law.The merger is expected to be approved in Extraordinary General Meetings of Alpha Bank and Eurobank EFG in November with completion of the legal merger effected by mid-December 2011.