The Bank of Cyprus is in negotiations to acquire the operations of Ethniki Insurance Cyprus. According to information obtained by Brief, discussions between the two parties are at an advanced stage, with indications that an agreement is close to being finalized.

All relevant regulatory bodies, including the Central Bank of Cyprus, the Cyprus Securities and Exchange Commission, and the stock exchange authorities in both Cyprus and Athens, are expected to be informed of developments by tomorrow at the latest.

The Cyprus Union of Bank Employees (ETYK), in a circular to its members at Ethniki Insurance Cyprus, stated that the management of Ethniki Insurance Greece has agreed to enter exclusive negotiations with the Bank of Cyprus regarding the acquisition of its Cypriot subsidiaries.

“Our organization,” the circular stated, “wants to assure its members that we are closely monitoring these developments with the aim of safeguarding jobs and employee rights.”

ETYK noted that it has already communicated with the Bank of Cyprus' management, which appears to support the acquisition process.

"As is often the case in mergers and acquisitions, restructuring within the management team and workforce is expected. The acquiring company typically seeks to reduce job positions due to synergies and economies of scale," the union stated.

ETYK also confirmed that it has sent a letter to the Bank of Cyprus requesting full details on the acquisition and specific assurances regarding job security for Ethniki Insurance Cyprus employees.

“Beyond the fact that our organization is the largest Cypriot shareholder in the Bank of Cyprus, holding approximately 8% of its shares, our leadership maintains strong relations with the bank’s management. This makes ETYK’s role in the process particularly significant,” the statement concluded.