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Bank Of Cyprus Achieves €1 Billion In Real Estate Sales Since 2019

by THEFUTURE.TEAM

August 12, 2024

Since 2019, the Bank of Cyprus has significantly reduced its non-performing exposures (NPEs) by selling over €1 billion in real estate assets. This aggressive divestment strategy is part of the bank’s broader efforts to improve its balance sheet and financial stability. The sales, which include a mix of residential, commercial, and land assets, have enabled the bank to enhance its capital adequacy ratios and strengthen its position in the Cypriot banking sector.

This strategic move aligns with the bank’s long-term goal of focusing on core banking operations while mitigating risks associated with holding extensive real estate portfolios. By offloading these assets, the Bank of Cyprus has not only reduced its exposure to non-performing loans but also generated substantial liquidity, which can be redirected towards more profitable ventures.

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The real estate market in Cyprus has shown resilience, supported by both domestic demand and foreign investment, particularly from European and Middle Eastern buyers. This favourable market environment has allowed the Bank of Cyprus to execute its sales at competitive prices, further bolstering its financial performance.

Looking ahead, the Bank of Cyprus is expected to continue this trajectory, leveraging the proceeds from these sales to strengthen its balance sheet further and explore new growth opportunities within its core banking activities. The success of this real estate disposal strategy underscores the bank’s commitment to maintaining a robust financial position and delivering value to its shareholders.

In conclusion, the €1 billion in real estate sales marks a significant milestone for the Bank of Cyprus, reflecting its strategic focus on financial health and risk management. This move not only enhances the bank’s stability but also positions it for future growth in a competitive and evolving banking landscape.

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Competition Authority Launches Comprehensive Review of ExxonMobil Cyprus Acquisition

by THEFUTURE.TEAM

September 16, 2025

Investigation Initiated Over Strategic Acquisition

The Competition Protection Authority has commenced a thorough investigation into the acquisition of ExxonMobil Cyprus Limited’s share capital by Petrolina Holdings Public Ltd through Med Energywise Ltd. This inquiry was formally initiated following a session held on 10 September 2025, after an in-depth review of the pertinent report by the Authority’s Service.

Concerns Over Market Compatibility

Authorities have expressed serious concerns regarding the compatibility of the transaction with established competitive practices. The review indicates that the acquisition may affect several critical petroleum markets, both horizontally and vertically, thereby raising the potential for adverse impacts on market dynamics.

Horizontal Market Dynamics

On the horizontal front, potential effects have been identified in the import market for petroleum products, as well as in both wholesale and retail distribution channels of these products. The consolidation is believed to increase the risk of price rises and coordinated actions, given the direct competitive proximity between Petrolina and ExxonMobil.

Vertical and Adjacent Market Implications

Vertical aspects of the merger are also under close scrutiny. The new entity could restrict competitors’ access to critical infrastructure such as storage facilities, supply channels, and customer bases. These restrictions could further affect the onshore distribution of fuels, the wholesale market for lubricants, and specialized technical services connected with fuel station operations.

Local Market Considerations

Particular attention is being paid to the potential concentration in the retail fuel market. The investigation suggests that a reduced competitive landscape within a four-kilometer radius of the companies’ fuel stations could lead to diminished local competition, adversely impacting consumer prices and options.

Next Steps and Industry Impact

The Competition Protection Authority, which reached a unanimous decision to pursue a full investigation, remains open to submissions from parties that might be affected by this transaction, as mandated by current legislation. A final decision is expected within four months upon receipt of all necessary evidence, potentially setting a significant precedent for future market consolidation cases in the energy sector.