Filenews 1 December 2024 - by Theano Thiopoulou
Just before the end of 2024, the business map is being redefined, both in the retail sector and in banks, as their management tries to make plans to take advantage of the growth potential of the country, one of the largest in the Eurozone.
Target companies are not only on the radar of foreign investors – mainly from Greece – but also among Cypriot entrepreneurs who want to grow their businesses and are looking for an opportunity.
The list of deals from the entire spectrum of the real economy, as presented by "F", was formed a few days ago, as there were important announcements that affect the business activity of banks, insurance companies, supermarkets, gas stations.
It was preceded by the health sector, with agreements announced confirming that most business sectors show significant momentum, making them the focus of attention.
The data analyzed show that competition between businesses and banks will increase in 2025, as the plans of each entrepreneur and banker are to create larger schemes that will withstand competition, greater profit and gain a larger market share to achieve the goal. Of course, the issue is whether, in the end, consumers also gain from business deals, both in terms of pricing products and services and in terms of service.
Eurobank's success
Without a doubt, one of the largest acquisitions in the Cypriot market, before closing in 2024, was made in the banking and insurance sector, starring the Greek group Eurobank, which paid dearly but closed an open issue, which it did not want to carry over to 2025.
A few days ago, it agreed with Dimitra Ependichia and Logicom to buy the shares held by the two companies in Hellenic Bank. An investment that in total – for the acquisition of the second systemic Cypriot bank – is close to €1.1 billion and even in cash.
If we take into account the 6.53% of the remaining shares for the Greek Eurobank Group to acquire 100% of Hellenic Bank, after February 2025, the investment will reach €1.2 billion.
Eurobank's plans for the near future include the creation of a bank in Cyprus, merging Eurobank Cyprus and Hellenic Bank, creating, in addition to the largest bank on the island, a scheme within which the business models of the two will complement each other.
Developments in the insurance industry
Business developments do not stop at the banking sector, but also extend to the insurance sector, as a direct and connected part of their operations.
On Thursday, Hellenic Bank announced that the Commission for the Protection of Competition approved the deal between the bank and CNP Assurances to acquire CNP Cyprus Insurance Holdings. Upon completion of the transaction, the bank will have a leading position in the Cyprus insurance market, with market shares of approximately 30% and approximately 23% in the life and general insurance sectors, respectively.
The transaction closed at €180 million. In addition to acquiring Hellinikon, Eurobank also acquires a leading position in insurance in Cyprus by far from the latter.
Competition on supermarket shelves
Businesses operating in the food sector and especially supermarkets "build" defenses to cope with competition by reaching agreements. The last example is the acquisition of Papantoniou supermarkets by the Greek group Sklavenitis and with this move market shares are differentiated and balances are changing.
The Greek company Sklavenitis will operate a total of 27 stores, employing 2,350 employees, securing all 769 jobs of Papantoniou supermarkets. Sklavenitis has 18 stores in Cyprus and Papantoniou supermarkets, which started in Chloraka in 1987, nine stores. In total, they had 9 stores in Paphos, Chlorakas, Kato Paphos, Polis Chrysochous, Geroskipou, Ypsonas, Catholic Centre of Limassol, Pissouri and Engomi and its turnover is approximately €150 million.
Petrol stations
Gas stations also entered the business agreements after several years. Petrolina announced last Thursday that Med Energywise, its wholly-owned subsidiary, has entered into an agreement to acquire 100% of ExxonMobil Cyprus' share capital. The acquisition consideration has been agreed at €48.6 million.
The company announced that the acquisition agreement is part of the further development of the existing operations of the Petrolina Group in the field of petroleum products trading in the Cypriot market. It is also expected to positively affect the prospects and results of the group, due to the economies of scale and synergies that can be created on the basis of PHL's many years of experience in the petroleum products sector.
Health was not left behind
The healthcare sector continues to promise investment prospects and opportunities in Cyprus. For the first time there are so many agreements in a short period of time.
Hellenic Healthcare Group, the largest private healthcare group in Greece, expanded to Cyprus, following the acquisition of Apollonion and Aretaeio and the acquisition of a significant stake in American Medical Center.
With the acquisition of a participation in the share capital of American Medical Center, Hellenic Healthcare Group significantly strengthens its presence in the healthcare sector in Cyprus and develops into one of the key players in the market. It is worth noting that Hellenic Healthcare Group utilizes the investment funds of CVC Capital Partners, which is one of the largest private equity investment funds worldwide, with presence in three continents and 23 countries, but also with significant specialization in the hospital industry, especially in southern European countries.
2023
These are not the only acquisitions that have been made, as they were preceded by other large partnerships in the previous year. The C.A.Papaellinas Group entered the refrigerated products market for the first time, following the acquisition of SureFood Ltd.
In 2023, GrandResort in Limassol was acquired by Fattal Hotel. MHV, which operates in the hospitality and real estate sectors in Cyprus and Greece, owns Parklane, Aphrodite Hills and The Landmark Nicosia in its portfolio of luxury hotels and resorts, residential complexes and offices.
Impetus from the Government
There is also a significant number of collaborations and mergers of small and medium-sized enterprises in other sectors of the economy, such as IT, tourism, real estate to address the growing challenges and market dynamics.
It is noted that Finance Minister Makis Keravnos, when asked about the granting of incentives to attract new investments, said that proposals of his ministry have been passed by the Council of Ministers "which give incentives, working capital to Cypriot businesses, to new businesses and even to small businesses, which decide to cooperate or merge with other businesses. so that we can get closer to economies of scale."
Also, the Cyprus Economy and Competitiveness Council (SOAC) has made recommendations to improve the competitiveness of Cypriot businesses through mergers and acquisitions. At the forefront of the Council's recommendations to achieve the objective of improving competitiveness is the creation of an integrated framework to support and change the culture regarding the promotion of M&A.
