Crédit Agricole acquires Emporiki Bank Romania

Crédit Agricole has signed the agreement to acquire Emporiki Bank Romania, from Emporiki Bank Greece, which fully owns the Romanian subsidiary, with the operation being subjected to the approval of the National Bank of Romania, according to a press release.

Once the operation is completed, Emporiki Bank Romania will take on the name of Crédit Agricole, as well as the official logo of the group.

"This acquisition is the final stage in a process which began in 2009, with a view of consolidating the ties between Crédit Agricole S.A. and the subsidiaries of the Emporiki Group. Over the last three years, due to the progressive integration into the Crédit Agricole S.A. Group, Emporiki Bank Romania took over from the Group regulations concerning risk and compliance, management standards, IT systems, as well as the name, which is a clear allusion to the Crédit Agricole brand", the press release states.

The announcement comes just one day after sources quoted by "Wall Street Journal" said that the French Group Crédit Agricole may abandon Emporiki Bank Grecia, allowing it to collapse, if the country were to leave the Eurozone.

The French group is looking at two possible options: to consolidate Emporiki Bank Greece into a Greek banking conglomerate, in which the stake of Crédit Agricole would be diluted to 10%, or to simply abandon the bank and let it collapse.

A spokesperson of Credit Agricole refused to comment on the information published in the media.

According to sources quoted by "Financial Times", the plan concerning Emporiki Bank Greece was not conditioned by an exit of Greece from the Eurozone, as it could be sparked off by other circumstances, including a massive run by its depositors on Emporiki, which is the fifth largest bank in terms of assets.

Last year, Emporiki Bank Romania reduced its losses from 13.5 million Euros in 2010 to 5.1 million Euros. The assets of the institution increased in the 2010-2011 period, reaching 259 million Euros. Its share capital has been increased by 40 million Euros over the last two years.