It has been just over a month since Banesco won the tender organized by FROB to revive the business inherited from the merger of the former Galician savings banks. Working with Etcheverría, a move recently completed by the Juan Carlos Escotet-led group, the bid of 1,003 million euros stood out in the first round, surpassing offers from major Spanish financial players and foreign funds interested in the Galician institution, now known as Abanca. Escotet publicly affirmed his commitment to the region, stressing the aim to preserve a presence that serves local communities and employees. This moment marked the dawn of a new chapter as Abanca began to emerge on the scene.
The president did not hesitate to take the lead in presenting the new brand to the public. This image came to symbolize the path that followed. In the ongoing sequence of strategic acquisitions and integrations, Abanca assumed a central role in the process. The group has completed seven acquisitions and anticipates an eighth, with the latest move involving the acquisition of EuroBIC, a step that will significantly expand Abanca’s footprint in Portugal, a priority market for growth.
Abanca will acquire 100 percent of EuroBIC, subject to standard due diligence common in such deals. The Portuguese bank, regarded as the ninth in the country, has endured a turbulent period under the control of Isabel dos Santos. The Angolan businesswoman, noted for her family ties to the former president of Angola, Jose Eduardo dos Santos, previously controlled a substantial share of EuroBIC until the Bank of Portugal intervened amid a broader scrutiny of Luanda Leaks. A potential agreement for Abanca to lead the bank was announced in early 2020, following a period of strategic reassessment.
In mid-2020, the Galician financial group paused the transaction citing price gaps and non-compliance with the terms. The decision was taken with the understanding that the sale would remain feasible, with the Portuguese regulator expressing confidence in a successful outcome despite the legal complexities and delays. Abanca subsequently stated that the Bank of Portugal is closely monitoring the operation and has been kept informed of its terms and progress.
Giant leap to the other side of the Miño
For Abanca, crossing the Miño represents a major strategic milestone. The move is expected to dramatically increase its presence across Portugal and position the bank as a leading financial institution in the country. Projections indicate the operation will boost total transaction volume to about 18.5 billion euros, expand the customer base to more than 300,000, and raise branch count to 249.
Abanca frames Portugal as a long-term priority within its Iberian expansion strategy, highlighting Portugal as a dynamic eurozone market with strong cultural and economic ties. CEO Francisco Botas noted that the deal helps optimize Abanca’s footprint in Portugal and creates complementary opportunities across strategic lines. Executives emphasized potential revenue synergies, growth in universal banking, expansion of off-balance-sheet products and insurance, and a stronger position in payment methods. EuroBIC contributes a notable share to Abanca’s balance sheet, with its assets, loan portfolios, and deposits cited in the broader strategic context.
The authorities are reviewing the competition implications of the transaction, and Abanca remains confident that the deal can be finalized within the anticipated timeframe in 2024.
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