Greek companies bolster Cypriot business
The investment climate in Cyprus has significantly improved since the crisis era of 2013, attracting substantial interest from Greek companies. These firms are finding the Cypriot market a fertile ground for expansions and acquisitions, with shared cultural ties and language facilitating smooth business operations.
Over the past two years, a diverse range of sectors, including real estate, healthcare, retail, energy, and banking, have seen significant Greek investment.
Greek financial giant Eurobank has become a major shareholder in Hellenic Bank, one of Cyprus’s largest banks. By July 2024, Eurobank had increased its stake to 55.48% and launched a public offer to acquire the remaining shares. This move could result in a total investment of up to 800 million euros, marking one of the largest investments in Cypriot history.
Alongside Eurobank, Alpha Bank of Cyprus and the National Bank of Greece (Cyprus) maintain a strong presence. Despite denials, there is ongoing speculation about their interest in acquiring shares of the Bank of Cyprus when available.
Greek supermarket chain Sklavenitis has announced the acquisition of Papantoniou Supermarkets, expanding its presence to 27 stores in Cyprus. This follows its 2017 acquisition of Marinopoulos. Sklavenitis plans further expansions in the Cypriot market.
BYD, a leading manufacturer of new energy vehicles, has partnered with the Sfakianakis group to distribute vehicles in Cyprus. Sfakianakis, which also distributes brands like BMW and Ford in Greece, will now introduce BYD vehicles to the Cypriot market. In related technology ventures, Electroline in Cyprus has a close association with Sfakianakis.
In November 2023, the Greek Public Power Corporation (PPC) acquired Kotsovolos from the British Curry’s group for 200 million euros. Kotsovolos, which entered the Cypriot market in 2021, is now set for further growth under PPC’s ownership.
Greek toy retailer Jumbo is expanding with a new store near the Mall of Cyprus and IKEA, an investment of 10 million euros. Jumbo’s strong performance in Cyprus saw sales increase by 10.58% in 2023 compared to 2022, contributing significantly to the company’s overall profits.
Helleniq Energy has made significant strides in the energy sector, acquiring two photovoltaic parks in Nicosia with a total capacity of 15 MW in May 2023. By October 2023, it further expanded with six additional parks, bringing its total capacity in Cyprus to over 40 MW. The company also launched EKO Energy, focusing on supplying green electricity.
Greek real estate company Trastor REIC established a subsidiary in Cyprus with a share capital of €33 million. The firm plans to invest €100 million by 2025, focusing on office space for sale or lease. Trastor is also collaborating with PGA group and international consulting firm Colliers to provide real estate consulting services in Cyprus.
CVC Capital, through its Greek subsidiary Hellenic Healthcare Group, has acquired several major hospitals in Cyprus. Recent acquisitions include the American Medical Center in Nicosia and plans for a new facility in Limassol. This follows earlier acquisitions of Apollonio Hospital, Aretaiio Hospital, and a radiology center.
Greek companies’ investments in Cyprus underscore the island’s appeal as a strategic location for diverse business ventures, promising robust returns and growth opportunities.
