Eurobank shareholders will receive 5 new Alphabank ordinary shares for every 7 of their own shares. Analysts report that Eurobank will be paying 27.5% premium for Alpha Bank shares although Alpha will be absorbing Eurobank under Greek merger law, reports Alkman Granitsas and Stelios Bouras for The WSJ.

Qatar will back the bank, and will control about 17% of the merged entity, becoming the largest shareholder of the bank.

Although the Athens General Stock Exchange was up on the news, the benchmark index is still down 28% year-to-date, reports Bespoke Investment.

Tisha Guerrero contributed to this article.