Piraeus-MIG tie-up to lead to restructurings

By Yiannis Papadoyiannis

Market experts expect the deal announced last week between the Piraeus Group and Marfin Investment Group to develop into a broader cooperation toward the merging of enterprises, aimed at creating stronger and more competitive firms.

Although Piraeus Bank states that no such planning or decision has been made, analysts point to the fact that both groups control a number of enterprises in sectors such as coastal shipping, health, food and information technology, among others.

Having absorbed as many as six banks in recent months, Piraeus now finds itself either a stakeholder or the main creditor of dozens of enterprises in various economic sectors that have run into problems due to the financial crisis.

For instance, in coastal shipping, Piraeus is the biggest creditor of ANEK, whose bank obligations amount to 400 million euros. In health, Piraeus is the main creditor of the Henry Dunant Hospital, through the former ATEbank, while it now also holds stakes in a number of dairy companies and cooperatives. In addition, the lender is among the main creditors of companies in the sectors of fish farming, information technology and tourism.

MIG controls 92 percent of food and dairy industry Vivartia, 89 percent of coastal shipping firm Attica, 70 percent of healthcare group Hygeia and 86 percent of IT company Singular Logic, to name but a few. Analysts say that ANEK, the Henry Dunant Hospital and other companies could join up with their MIG counterparts, thereby creating stronger and more competitive corporations. That way the Piraeus Group would resolve longstanding problems in its financial reports and reap capital gains as MIG’s main shareholder.

Nevertheless, Piraeus sources say that even though the group is...