BELGRADE (Serbia), July 1 (SeeNews) – Greece’s Eurobank has signed an agreement to merge its Serbian unit Eurobank Beograd with local sector actor Direktna Banka, Eurobank reported Thursday.

Eurobank will control around 70% of the combined bank, while shareholders of Direktna Banka will own the remaining 30%, the Greek lender said in a statement.

The combined bank, named Eurobank Direktna, will have total assets in excess of € 2 billion, total equity in excess of € 300 million, and pre-provision income and net profit in excess of € 50 million and € 35 million. euros, respectively, said Eurobank.

“We are pleased to have reached an agreement with the management 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 reach and create added value for its shareholders through targeted acquisitions, mergers or joint ventures, ”said Stavros Ioannou, Deputy Managing Director of Eurobank.

The two sides have embarked on a growth-oriented business plan, incorporating ambitious expansion goals that will allow the combined bank to finance the Serbian economy and grow profitably over the next few years, noted the Greek lender.

“This merger represents a clear opportunity to enhance the profitable growth that we have experienced with Direktna. We believe that Eurobank Direktna will have a unique opportunity to benefit from a solid institutional experience and the size brought by our Eurobank partners and of our deep understanding of our home market, ”said directors of Direktna Banka Andrej Jovanovic and Bojan Milovanovic in the statement.

Completion of the transaction is subject to customary approvals from the relevant regulatory and supervisory authorities and is expected to take place in the last quarter of 2021.