KBC and Santander approve merger of Zachodni and Kredyt banks.
Two Polish banks are to merge and will be held by Santander and KBC.
Santander and KBC's negotiation strategies have resulted in the banks agreeing to merge Polish financial institutions Kredyt Bank and Bank Zachodni.
The new company will be the country's third largest bank in terms of profit, branches, loans and deposits.
KBC will hold 16.4 per cent of the merged firm, while Santander will own around 76.5 per cent of it, with minority investors possessing the remaining 7.1 per cent.
Every 100 Kredyt Bank shares will be traded for 6.96 Bank Zachodni shares and the enterprise will still be listed on the Warsaw Stock Exchange.
This merger is subject to the Polish Financial Supervision Authority's regulatory approval, as well as final agreement and independent evaluation from the two institutions.
"Even in an extremely challenging macroeconomic environment and in very volatile market circumstances, we have succeeded in reaching agreement on one of our most important divestment files," KBC Group chief executive officer Jan Vanheval said.
As well as Poland, Santander focuses on the markets of the UK, Brazil, Spain, Portugal, Germany, the US, Argentina, Mexico and Chile.
Posted by Ron Maverick
Source: Santander / KBC joint press release, February 28th