Piraeus Bank Completes Acquisition of Cypriot Bank Units

ATHENS--Greece's Piraeus Bank SA has agreed Tuesday to acquire the Greek branch network and operations of three Cypriot lenders for a total cash consideration of 524 million euros ($673.9 million) as part of a bailout agreement for the crisis-hit island, the bank said in a statement.

Piraeus Bank signed an agreement Tuesday to acquire all of the Greek deposits, loans and branches of Bank of Cyprus (BOCY.CP), Cyprus Popular Bank (CPB.CP) and Hellenic Bank, including loans and deposits of their Greek subsidiaries.

"The branches of the three Cypriot banks in Greece will open tomorrow Wednesday, 27 March 2013 and all the operation will be run in the normal course of business," the statement said.

This acquiring of the Cypriot branches was part of a EUR10 billion rescue plan put together by the island's international creditors.

Following the completion of the transaction, Piraeus Bank will have consolidated total assets of EUR95 billion, 1,660 branches and 24,000 employees.

"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," the statement added.