Eurobank and Alpha very close to a deal

In view of the possibility that banks will be controlled by the state in January, the discussions on strategic alliances between banks, which would have changed the situation, have been rekindled.

According to information that has not been confirmed, Eurobank and Alpha Bank are in advanced negotiations. The belief in the market is that the two banks are close to a deal that will create the biggest private Greek bank. Rumors say reaching an agreement is a matter of days and that the plan foresees a second phase and a large bond issue, a significant portion of which will be covered by Qatar, which already controls about 4,5% of Alpha’s capital.

But many times in the past months there have been rumors about bank deals which were ultimately unsuccessful, and it would be risky to assume a partnership between Alpha-Eurobank if no official announcement is made. Besides, the outcome of the recent National-Alpha flirtation should make us cautious, as should the course of ASE shares, which does not show that such a merger is being prepared.