Eurobank achieves unconditional clearance for acquisition of majority share in Hellenic Bank Cyprus

On February 2, 2024, following an in-depth investigation, Eurobank Cyprus (part of the Eurobank Group) received unconditional clearance from the Cyprus Commission for the Protection of Competition (‘CPC’) for the purchase of a majority share in Hellenic Bank in Cyprus. Compass Lexecon worked closely with Eurobank Group and its legal counsel, to provide support during the merger notification process and help resolve the CPC’s concerns.

The Compass Lexecon team assisted with economic analyses of closeness of competition between the Parties and their competitors, market shares and customer switching. The team also analysed the drivers behind banks’ pricing decisions and customer demand in the context of a changing environment, using extensive industry data from national and central banks of Cyprus and Greece, the European Central Bank and other third-party sources.

The team also analysed the complementarity of the Parties’ offerings and the increasingly important role played by non-traditional banks. By demonstrating that the proposed acquisition would not result in a substantial lessening of competition, the Eurobank Group and its advisors fully addressed any CPC concerns.

The Compass Lexecon team was led by Lorenzo Coppi and Angelos Stenimachitis, and included Maria Papapetrou and Haris Spyrou. The team worked closely with Dimitris Loukas of Potamitis Vekris and Christina Ioannidou of Ioannides Demetriou throughout the proceedings.