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The Warsaw Voice » Business » December 11, 2017
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Banking giants to merge?
December 11, 2017   
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Pawel Borys
WSE-listed state-controlled banking giants PKO BP and Pekao are mulling a merger in 2018, the daily Parkiet writes of its own findings. The Pekao chair Michal Krupinski might become the CEO of the new bank, while the CEO of PKO BP Zbigniew Jagiello would stand at the helm of a supervisory board endowed with a wider range of competences, the daily claims.
The merger has already been discussed at a number of meetings, the daily writes. The potential merger would bring the Polish banking sector a step closer to an oligopoly and lower competitiveness on the financial services market due to the expected sector consolidation, Millennium DM's head of analysis Marcin Materna says. The strengthened position of the new bank would attract new investors, he adds.
The merger would be a desirable move from the perspective of Poland's position on the EU banking market, the Polish Development Fund chair Pawel Borys remarks.
On the flip side, the time-consuming nature of such a merger would have a short-term negative effect on the banks' business, DM Citi Handlowy analyst Andrzej Powierza observes. Also, both banks are efficient and cost synergies would be low, Powierza added.
Political issues and the consumer protection watchdog UOKiK could be obstacles to the potential merger's smooth progress, Parkiet concludes.
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