Two Polish banks Bank Pekao SA and Alior Bank, both controlled by PZU, are considering cooperation or a merger, in a bid to strengthen their position on a fragmented and competitive market where banks struggle with super-low rates and regulatory pressure. The banks signed a letter of intent to assess “different forms of potential cooperation or merger of both entities”.
In June Poland’s top insurer PZU and state investment vehicle PFR – Polish Development Fund finalized the takeover of a 32.8% stake in Bank Pekao from Italy’s UniCredit for a total sum of PLN 10.6 bln. Alior Bank was bought by PZU in 2015 and the insurer has a 32 percent stake.
