The recent acquisition of bankrupt company Fulgor by the Viohalco group through its Hellenic Cables subsidiary was the first move in a cycle of mergers and acquisitions (M&A) starting in local industry due to the Greece’s three-year recession. A survey by Eurobank Equities – as daily Kathimerini reports – suggests that the recession will bring a wave of M&A action on the Athens Exchange and on the domestic business scene in general that will last for at least 12 months.
The first phase of that process will concern companies experiencing reduced demand for their products, while the second will come when the economy has begun its rebound and will involve companies with robust financial figures and which are ahead in their sectors proceeding to acquiring companies with lower valuations, the report argues. Already Hellenic Postbank is in the process of absorbing T-Bank, while ATEbank is selling its controlling stake (82.33%) in Hellenic Sugar Industry, with interest being expressed by German sugar producers Nordzucker and Suedzucker, as well as two multinationals owned by Britons and Russians.
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