Societe Generale has entered into an agreement to sell Euro Bank, its retail banking subsidiary in Poland, to Bank Millennium.

The reference transaction price for the sale of Euro Bank has been set at PLN 1.83 billion. The final price will be adjusted based on the net asset value of Euro Bank at closing of the transaction.

The transaction involves the sale of Euro Bank in the entirety, and unlike other recent transactions in the banking sector does not involve a demerger of the business separated from the foreign currency mortgage business of the bank. The transaction is governed by Polish law and includes unique risk sharing arrangements in respect of the Swiss Franc denominated mortgage loan portfolio of Euro Bank.

Greenberg Traurig advised Societe Generale as its Polish counsel in structuring and negotiating the transaction, development of the risk sharing arrangements for the Swiss Franc denominated mortgage portfolio, and consultations with the Polish Financial Supervision Authority (Komisja Nadzoru Finansowego), and will continue to assist Societe Generale with respect to Polish law in the completion of the sale.

The legal work on the transaction is supervised by Senior Partner Lejb Fogelman and led by Partner Stephen Horvath and Partner Lukasz Pawlak.

The Greenberg Traurig team also includes: Partners Marek Kozaczuk and Robert Gago, Local Partners Karolina Dunin-Wilczynska and Anna Halas-Krawczyk, of Counsel prof. Adam Opalski, Senior Associates Maciej Kacymirow, Radoslaw Pawluk, along with Associates Maciej Pietrzak from the London Office, Magdalena Medynska, Mateusz Slizewski, Magdalena Bachleda-Ksiedzularz, Grzegorz Socha and Marta Kownacka.

The closing of the transaction is expected in the first half of 2019, subject to the approval of the Polish Financial Supervision Authority and the relevant antitrust authority.

Societe Generale is one of the largest European financial services groups with 31 million customers in 67 countries. Based on a diversified and integrated banking model, the Group combines financial solidity and a strategy of sustainable growth. Societe Generale will continue to provide corporate and investment banking services in Poland, and will remain present in the country in various other activities.

Shearman & Sterling advised Societe Generale on French law and other matters related to the transaction.