Belgium's KBC and shareholders of Bulgaria's Economic and Investment Bank (EIBank), Tzvetelina Borislavova and Investment Fund Novator, signed an agreement under which KBC acquired a 75 per cent share of EIBank for 295 million euro.

EIBank is one of the ten largest banks in Bulgaria.

KBC and Borislavova signed a partnership agreement under which Borislavova owned a minority share of 22.3 per cent in the bank and became partner of KBC and its Bulgarian bank activities, a KBC press statement said.

The transaction would have to be approved by the Commission for Protection of Competition (CPC).

KBC announced it would make offer for the remaining 2,7 per cent once the take-over would be completed.

"This is an important transaction for KBC in the Bulgarian financial market. Earlier this year KBC became shareholder in DZI Insurances," Andre Bergen, CEO of the KBC group said. "With this new take-over, KBC creates the ideal opportunity to extend the bank-insurance model and become the largest bank-insurer in a quickly growing Bulgarian market."