Bank Millennium has agreed to acquire a 99.79% stake in Euro Bank, the Polish retail banking unit of French banking group Societe Generale in a cash deal worth PLN1.83bn ($482.8m).

The acquisition is said to add 1.4 million new clients to Bank Millennium’s portfolio and more than 200 new cities to the bank’s coverage.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

“In line with Strategy 2020, the acquisition of eurobank will allow Bank Millennium to increase the size of its consumer lending segment as well as the overall importance of this business within the Group,” Bank Millennium said in a statement.

Bank Millennium will fund the deal using its internal resources. It expects PLN650m of synergies over the next five years from the transaction.

The deal is expected to be wrapped up in the second quarter of next year, subject to regulatory nod.

Societe Generale expects the transaction to increase the group CET 1 ratio by 8 basis points. The transaction will also reduce the bank’s risk-weighted assets by $2.3bn.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

At the same time, the French lender announced its commitment to retain corporate and investment banking services in Poland.

Societe Generale Group deputy CEO in charge of international retail banking activities, financial services and insurance Philippe Heim said: “The sale of Euro Bank is a further step in the execution of Societe Generale’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.”