Cyprus remains an attractive and stable destination for Greek businesses due to its comparative tax advantages and the country’s stability. After a prolonged period of stagnation, mergers and acquisitions are resurging.
Recent examples in sectors such as banking, healthcare, and retail confirm that Cyprus continues to be a focal point of interest for Greek businesses. Despite its small market size, Cyprus offers significant advantages such as robust economic performance, a friendly business environment, favorable tax rates, and tax stability.
In the banking sector, the Greek group Eurobank became a major shareholder of the Hellenic Bank, increasing its stake to 55.3% on June 3, 2024, following approvals from the ECB, the Central Bank, and the Competition Protection Commission. This move inevitably creates new dynamics within the domestic banking system. The next step involves submitting a public offer to all shareholders to secure a larger percentage, enabling strategic decision-making such as potential mergers.
Last week, the official announcement was made regarding a significant retail trade deal expected to reshape the sector. The Greek conglomerate Sklavenitis, through its presence in Cyprus via Sklavenitis Cyprus, further strengthens its market presence by acquiring Papantoniou Hypermarkets, bringing its total number of stores to 27.
Upon completion of the deal and pending approval from the Competition Protection Commission, it is anticipated to generate approximately €300 million in annual turnover. Sklavenitis emphasized in its announcement that all 769 jobs will be retained.
