The Cyprus competition watchdog, the Commission for the Protection of Competition (CPC), has approved Eurobank’s acquisition of a 26.1% stake in Hellenic Bank, bringing Eurobank’s total ownership to 55.9%. The approval passed narrowly with a 3-2 vote, following an extensive market review to assess the transaction’s impact on competition. The review solicited input from various financial institutions and revealed that combined market shares in various sectors, including loans, retail lending, and deposits, remain within acceptable limits. The CPC majority did not find significant risks to competition, citing the competitive capabilities of smaller banks. However, the CPC minority raised concerns about potential anti-competitive behavior and the overall market structure, fearing that smaller banks may not cope with a significantly higher demand. Despite these concerns, the CPC concluded that the banking sector remains competitive enough to absorb any foreseeable changes.
Banking, Regulation,Cyprus
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