AstroBank on Tuesday announced that it has signed an agreement to sell nearly all its assets, liabilities and staff to Alpha Bank Cyprus, creating the country’s third largest bank.

According to the announcement, the agreement involves the full transfer of its banking assets and obligations, including its personnel, to Alpha Bank Cyprus.

The bank said that the “integration of AstroBank’s operations into the Alpha Bank Group significantly strengthens the group’s strategic footprint in Cyprus”.

The completion of the transaction is expected within the fourth quarter of 2025, pending the necessary regulatory approvals.

The bank said that the new entity will have “a stronger financial base and enhanced growth prospects“.

“The acquisition opens new opportunities for both AstroBank’s employees and its clients, who will benefit from the extensive international network of Alpha Bank, one of the largest and most reputable banking groups in Greece and Southeastern Europe,” the announcement added.

Moreover, the bank said that the agreement “reflects recognition of AstroBank’s steady growth trajectory over the past four years under the leadership of CEO Aristidis Vourakis and his team”.

The bank further stated that it “demonstrates continued confidence in Cyprus’ economy and banking system“.

“The signing of the agreement marks a significant milestone for AstroBank, its people and the Cypriot economy at large” said Vourakis.

He added that “the agreement creates a strong banking organisation, capable of responding even more effectively to market needs and contributing substantially to the development of the Cypriot economy.”

“The enlarged bank will have increased financing capacity, an expanded network and expertise, and will be able to offer modern, competitive and reliable services to both individuals and businesses” he concluded.

In a separate statement, Alpha Services and Holdings S.A., the parent company of Alpha Bank Cyprus, confirmed the execution of the definitive business transfer agreement.

The transaction follows the preliminary commercial and legal agreement announced on February 27, 2025.

Alpha Holdings stated that the acquisition is “fully aligned with its strategic goal of strengthening its market position and financial standing in Cyprus”.

Alpha Holdings stated that, as previously disclosed, the transaction is expected to contribute approximately 5 per cent to its earnings per share on a fully phased-in synergies basis.

It also indicated that the deal would have a limited impact of around 40 basis points on its Common Equity Tier 1 ratio.

The purchase price upon completion of the transaction is estimated to be no less than €205 million.

“The completion remains subject to customary closing conditions, including regulatory approvals and consents, and is projected to be finalised within the fourth quarter of 2025,” the announcement said.

This consolidation signals a new chapter for the Cypriot banking landscape, positioning Alpha Bank Cyprus for greater competitiveness and growth.