Italy’s UniCredit on Monday announced plans to become Greek lender Alpha Bank’s largest investor while also agreeing to acquire most of the bank’s Romanian business.

UniCredit has offered to buy a 9 per cent stake owned by Greece's bank bailout fund – the Hellenic Financial Stability Fund. Terms of the bid were not revealed, but those shares were valued at about €269 million at the end of trading last week, with government officials welcoming the offer.

The deal for the Romanian business will see Alpha Bank receive €300 million in cash. Alpha Bank will retain a 9.9 per cent stake in a newly created entity which merges both bank's Romanian businesses and will become the third-largest lender by assets in the country.

UniCredit will also acquire 51 per cent of Alpha's wholly-owned life insurance unit AlphaLife Insurance Company.

UniCredit boss Andrea Orcel has overseen a strategic shift towards smaller-scale acquisitions in central and eastern European countries. It previously announced a similar tie-up in Romania.

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