Eurobank and Direktna Banka announced the agreement for the merger in Serbia.
Following the merger, the combined bank will have total assets in excess of €2bn and the market share exceeding 6.5%, making it the seventh largest in Serbia.
After the completion of the transaction, Eurobank will control c. 70% of the combined bank, while Direktna’s shareholders will own the remaining 30%. 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.
“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. We are excited with our partnership with two exceptional Serbian entrepreneurs Andrej Jovanović and Mr. Bojan Milovanović and we are confident for the success of our ambitious plans in Serbia. The merger of Eurobank Serbia with Direktna has substantial merits for all stakeholders of the combined bank including customers, both retail and corporate, depositors, employees and regulators”, said Mr. Stavros Ioannou, Deputy CEO, Group Chief Operating Officer (COO).
“The agreement for the merger of Eurobank and Direktna Banka is in line with Eurobank’s long-term strategy of further strengthening of its position in the local banking and financial market. We are particularly glad that we managed to establish successful collaboration with Direktna Banka representatives, which will contribute to achieving our shared goals in the future and even more successful operations under the same roof. This partnership represents a great opportunity to additionally improve our services and products and continue to be a reliable partner and a safe choice of our numerous clients, as well as representatives of the regulatory bodies and all employees”, said Slavica Pavlović, President of the Executive Board at Eurobank.
Formal 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.