Alpha Bank and Eurobank EFG Join Forces to Create a Leading Bank in Greece and Southeastern Europe

The Boards of Directors of Alpha Bank and Eurobank EFG announce that they have reached agreement on a combination of Alpha Bank and Eurobank EFG by way of a merger. This is a 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. The new group will have leading positions across all major banking segments in Greece as well as an outstanding presence in Southeastern Europe, with an aggregate network of more than 1,300 branches across 8 countries and top 3 market positions in Bulgaria, Cyprus, Romania and Serbia.

The new group will be also among the top 25 largest Eurozone banking groups with pro forma total assets of €146 billions and will have the appropriate critical mass to establish it as a reference stock in the capital markets.  

The Board of Directors and the Executive Committee will be chaired by Yannis Costopoulos and the management team will be led by two co-CEOs, Demetrios Mantzounis who will be in charge of control and central functions and Nicholas Nanopoulos who will be in charge of business functions.

Yannis Costopoulos, Chairman of Alpha Bank and proposed Chairman of the new group said: “I am delighted that Alpha Bank and Eurobank EFG have agreed to come together and create the Greek bank of reference and a significant new force in European banking. At a time when it is hoped Greece will experience the first signs of a recovery through the implementation of reforms and the support of its European partners, the new bank will aim to contribute to the resumption of growth in Greece and our country’s connectivity with its neighbouring markets in Southeastern Europe. This merger is a decisive step in the strengthening of the private sector economy at a crucial juncture in Greece’s history, demonstrating the ongoing support of leading international investors. Finally, I am delighted to welcome Paramount’s increased participation in the enlarged bank”.

Efthymios Christodoulou, Chairman of Eurobank EFG said: “I welcome the proposed merger and the participation of Paramount as it creates a new Greek and regional banking champion, combining a strong capital base and a talented and committed management team with extensive complementary skills and capabilities. I am confident that the new combined entity will act as an important agent for the economic development of the country. It is also well placed not only to withstand the current economic turbulence but also to create new opportunities and play a pivotal role in the future growth of the region.”

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. Financial advisers to Alpha Bank are Citi and JP Morgan and Barclays Capital, Goldman Sachs International and Rothschild are acting as financial advisers to Eurobank EFG.