It’s just over a month since Banesco won the tender organized by FROB to give new life to the business inherited from the merger of the former Galician savings banks. With the help of Etcheverría, which the Juan Carlos Escotet-led group recently acquired, its €1,003 million bid has already beaten bids in the first round from the Spanish financial industry heavyweights and foreign funds interested in Novagalicia. . “I share with the Galician society my determination to maintain an existence committed to the interests of the region and its employees.”At the last minute of that enthusiastic day when Abanca began to be born, Escotet itself announced it.
The president did not hesitate to take the baton of the orchestra hired to introduce the new brand to the public. This image became a good metaphor for everything that came after. In the incessant music of the new fusion dances, the financial leader of Galicia took charge of the party, taking the leading role in all operations. There are seven acquisitions and an eighth is coming. Abanca has finally managed to complete the acquisition of EuroBic, which will triple its presence in Portugal, one of its priority expansion areas.
Galicia bank undertakes: 100% of the capital of the Portuguese entity After finishing due diligence is common in such transactions. More if possible in this case. EuroBic, the ninth Portuguese bank, comes from a turbulent period under the control of Isabel dos Santos. The billionaire daughter of Angola’s former president, José Eduardo dos Santos, controlled 42.5% of the capital until the Bank of Portugal opened the door to her after a corruption scandal broke and EuroBic’s main shareholder was revealed in Luanda Leaks. A deal for Abanca to take the reins was announced in February 2020.
In June of the same year, the Galician financial group chose to abandon the operation due to price differences (rumored to be just over 200 million euros) and “non-compliance with the agreement”. Portuguese auditor retained confidence a “successful” sale despite “legal difficulties and delays”. Abanca said in a statement yesterday: “The Bank of Portugal is accompanying the operation and has been informed in detail about its conditions.” said.
Giant leap to the other side of the Miño
For Abanca, on the other side of the Miño, the operation takes another big step. It will “significantly” increase its presence there and become one of the main banks in the country. It will triple your throughputup to 18.5 billion euros; quadruples the number of its customers to over 300,000; The number of branches increased by 3.5 to 249.
“Portugal has always been a priority for Abanca within the framework of our strategy to position it as an Iberian professional entity. It is a natural market for us due to one of the most dynamic economies in the eurozone and its intense economic and cultural relations. Following the announcement, Escotet said: “With Spain and especially Abanca “Operation allows us to optimize Abanca’s presence in Portugal and gives us complementarity along strategic lines“, emphasized CEO Francisco Botas. “This will mean clear revenue synergies, further development in universal banking, growth potential in off-balance sheet and insurance, and a strong positioning in payment methods.” EuroBic, Abanca’s balance sheet accounts for 9% of total assets, 5, 10.1% of the loan portfolio, 10.5% of deposits and 15 of every 100 euros of the basic margin.
The operation is awaiting approval of competition permits, but Abanca is confident it can close the operation in June 2024.