Alpha Bank SA, Greece’s third-biggest lender, said it is buying Credit Agricole SA (ACA)’s unprofitable Greek unit Emporiki Bank for a “nominal” consideration.
Alpha Bank said Credit Agricole will inject 500 million euros into Emporiki and subscribe to a convertible bond.
Credit Agricole is selling its Greek division as concerns linger over Greece’s future in the euro area. The nation, bailed out by the European Union and the International Monetary Fund, is struggling to rein in its deficit, halt a five-year recession and avoid exiting the euro currency.
Emporiki’s loan book makes Credit Agricole the foreign bank with most to lose should Greece exit the euro.
To contact the editor responsible for this story: Vidya Root at firstname.lastname@example.org