Société Générale has entered into an agreement to sell its Polish retail banking subsidiary Euro Bank to Bank Millennium.
The closing of the transaction is expected to take place in H1 2019, with Bank Millennium acquiring around 99.79% of the shares in Euro Bank for a reference price of PLN 1,833m (approximately £372m).
This transaction is in line with Bank Millennium’s strategy for the years 2018-20 and will bring in 1.4 million new customers.
Joao Bras Jorge, chairman and CEO at Bank Millennium, said: “…By 2020, Bank Millennium intends to become the leader of growth on an increasingly concentrated market, hence our openness to new possibilities of non-organic growth and confidence in this project success.
“Bank Millennium is a universal bank, while Euro Bank is an expert in offering consumer loans.
“This is important, because by 2020 we wish to increase by 40% the sale of cash loans, especially those directed to new customers.
“Add to this the complementary distribution networks – including competencies in new-to-bank loan sales and in running a franchise network – and we will get a partnership built on solid foundations of knowledge and experience.”
Société Générale will continue to provide corporate and investment banking services in Poland through its global banking and investor solutions business.
Philippe Heim, deputy chief executive officer at Société Générale Group, said: “The sale of Euro Bank is a further step in the execution of Société Générale’s strategic and financial plan ‘Transform to Grow’, whose primary objectives are to focus and develop its presence on markets and activities with a critical size and the potential for generating synergies with other group businesses.
“International retail banking activities are a profitable growth engine for Société Générale Group and we are committed to pursue their development.”
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