Fusion of PZU and Pekao
On Monday PZU and Bank Pekao They signed the Memorandum about cooperation in order to conduct a potential connection transaction until June 30, 2026.
“From the connection of PZU and Pekao A player will be created on a European scale, which will be able to sail to wider international waters. But in the planned connection of PZU and Pekao, the first thing is that this will strengthen the lending of the Polish economy. The estimated PLN 20 billion of the released capital will translate into the possibility of additional loan in the amount of PLN 200 billion, “said the dean of the College of Finance and Economics at PAP at the Leon Koźmiński Academy, Prof. Jacek Tomkiewicz.
The economist pointed out that in Poland there are regulations specifying the so -called Concentration limits, which indicate how much one bank can borrow to one entity as much as possible. This is to reduce the risk of granting a loan. The entity with greater capital will have a larger limit.
CPK financing, nuclear power plants, energy transformation
“The demand for loans is huge. We will have to finance great investments: CPK, nuclear power plants, energy transformation. So we need a sufficiently large entity, which will bear while maintaining all the rules ” – emphasized Prof. Tomkiewicz.
As the expert noted, consolidation is underway in the Polish banking sector, but in his opinion this does not create a risk of restriction of competition. “Our banking system has not been dominated by two or three entities, there are a lot of players on it. We have a healthy structure, and both Polish Financial Supervision Authority What Office of Competition and Consumer Protection They make sure that the competition is preserved ” – he noted.
The economist indicated that the technological and regulatory changes in the world of finance facilitate capital flows and international cooperation. “Banks do not have a comfortable situation and are forced to constantly improve the quality of services, e.g. to meet the fintech sector competition,” he added.
Antitrust procedure
In the opinion of prof. Tomkiewicza should not be expected that the antitrust procedure will be covered The connection of PZU and Pekao will complicate this process. He added that due to the size of both entities, the transaction will be examined not only by UOKiK, but also by the EU Antitimonopolium agency DG Comp.
“It was certainly checked whether both institutions could have reservations. Besides, we have a few other large banks in Poland, so there is no risk that the connection can somehow disturb the market. In addition, the new capital group will be created with connections of the bank with the insurer, i.e. de facto entities from two different industries” – noted an expert from the Koźmiński Academy.
A similar story with Dutch ING
Prof. Tomkiewicz pointed out that in the world you can find examples of similar consolidations that have brought success, but also those whose consequences were negative.
An example of a successful merger of entities from the banking and insurance sector is Dutch ING. “Relatively The little Netherlands in this way gained a very strong player, which counts in global markets. However, conglomerates were also created, whose history ended terribly. For example, it was the fact that they were selling their services – a loan granted by one of the entities was insured by the other, belonging to the same capital group. Ultimately, such practices contributed to the financial crisis in 2008, “said the economist.
He added that such situations are to be prevented by adequate financial supervision, i.e. in Poland – KNF.
Memorandum PZU and Pekao
According to PZU and Pekao Memorandum signed on Monday, a potential merger transaction until June 30, 2026 assumes, as the companies reported in the communiqué, the division of PZU into a holding and operational company, and then incorporating the first Bank Pekao. The main goals are to simplify the group’s structure, increase the efficiency of Bancassurance and achieving income synergy. Companies expect that the effect of a transaction, subject to a series of conditions and necessary to obtain consents, would be to release a capital surplus of up to PLN 20 billion.
Minister of Finance Andrzej Domański He said on Monday during the European Financial Congress in Sopot that he was satisfied with a cooperation agreement between PZU and Pekao. He pointed out that on the basis of potentially released PLN 20 billion in capital, it would be possible to create a credit action of up to PLN 200 billion. This would allow you to double the current investment loan balance for enterprises in Poland.
He added that it would be Credit program with a scale comparable to the National Reconstruction Planwhich will enter the market after completing the KPO investment.
The Minister of State Asset Jakub Jaworowski also referred to the PZU and Pekao decision announced on Monday. He noted that this event “has an epoch -made nature” and can push the Polish financial market “dynamically forward” and create great value for customers, shareholders and economy. (PAP)
