In recent years, in the banking sector in Bulgaria, there has been an active consolidation between the main players in it and a rearrangement of their positions. That is why it was not a surprise when less than a month ago information appeared in the media about the sale of First Investment Bank (FIB), and Postbank, which is owned by Eurobank (Eurobank) and UniCredit Bulbank, were selected as buyers.
However, this information was not confirmed by any of the cited banks, as the FIB immediately issued an opinion that no such transaction was being worked on.
"First Investment Bank (Fibank) does not comment on market rumors, but given the potential significance of unconfirmed information published in "Capital" weekly newspaper, based on unofficial sources and contrary to good journalistic standards, we inform the public that the Bank has not started and is not taking place procedure under the so-called due diligence, which procedure is a standard element in the purchase and sale of a structure-determining asset for the Bulgarian economy."
However, the bank's opinion did not stop the wave of rumors and speculative theories continued to appear in some media. While it was debated whether these rumors had any basis and whether the bank's position was clear, vague or outright denying the information that had emerged, something else stayed out of the limelight. The headquarters of Eurobank published their official statement, which they were asked for by the Greek Capital Market Commission on 22.05.2024:
"In connection with the information in electronic media about Eurobank Group's alleged interest in the acquisition of the Bulgarian bank First Investment Bank AD ("FIB"), Eurobank Ergasias Services and Holdings S.A. ("Eurobank Holdings") declares that this information does not reflect reality."
This puts all the information that has emerged about ongoing negotiations for the sale of FIB into the realm of speculation. In such transactions, the information reaches the media and the public only after it has already been initialed between the buyer and the seller. Everything else is just hearsay and general talk. The fact that it's being hyped before there's ever been any concrete action such as due diligence done, and even quoting specific numbers about the value of the deal and the time it will take (which was never met) speaks to a desire for more attention than providing reliable information.
Until now, there has been no official comment from UniCredit on the subject, but given that two of the cited banks categorically reject the existence of initiated purchase-sale processes, then apparently the comment on their part becomes redundant.
Although the news is heading towards another "fake", the consolidation process in the sector continues. At the beginning of the year, Bulgarian-American Credit Bank (BACB) announced that it had reached a deal to acquire the smaller Tokuda Bank. And the previous few years saw a series of acquisitions, which also led to a shift in the positions of the big banks. The long-time leader UniCredit Bulbank was overtaken by United Bulgarian Bank (UBB) and DSK Bank. It is clear that there is still much to optimize in the sector, and as indicated by the FIB itself:
"For its more than 30-year history on the Bulgarian market, Fibank has established itself as the largest and most authoritative bank with Bulgarian capital, with majority shareholders Ivaylo Mutafchiev and Tseko Minev. In this capacity, it has always been of interest to Bulgarian and foreign investors." |BGNES
