Spain’s Abanca to buy Portuguese EuroBic bank

Spanish lender Abanca informed it has agreed to buy 95% of the shares in Portugal’s EuroBic, in which Angolan billionaire Isabel dos Santos has been trying to sell a 42.5% stake, in a bid to boost revenues.

This is Abanca’s fifth acquisition since 2014 and its second in Portugal, and is conditional on the completion of due diligence, Abanca said in a statetement. Portugal’s central bank (BoP) had been informed of the deal, which now needs approval from both the European Central Bank and Bop. The price of the deal wasn’s disclosed. 

«We are betting on the Iberian Peninsula», Abanca Chairman Juan Carlos Escotet said in a statement sent by the lender. «This (deal)… allow us to significantly increase our business volumes by more than €11 billion».

By the end of December, EuroBic managed around €5.2 billion in credit as well as €6.15 billion in deposits, according to data provided by Abanca.

Beside Isabel dos Santos’ stake, the acquisition also includes a 37.5% stake in EuroBic belonging to Fernando Teles, the former chairman of Banco BIC Português, as the lender was previously known.

EuroBic has non-performing loan (NPL) ratio of 6.4%, below the average across Portuguese banks last year of 8.3%, and employs 1,482 people and has 184 branches.

Original Story: Reuters |Jesús Aguado and Catarina Demony
Photo: Site EuroBic
Edition: Prime Yield