Poland's Pekao, PZU sign memorandum for potential merger
June 2 (Reuters) - Polish bank Pekao (PEO.WA), opens new tab said on Monday it had signed a memorandum with insurer PZU (PZU.WA), opens new tab to prepare a potential merger deal to create one of the biggest financial institutions in Europe.
Ahead of the potential deal, PZU would be split into a holding company and a wholly-owned unit running its operational insurance activity, Pekao said.
Thereafter, the holding company would be merged with Pekao, the lender added.
Currently, PZU holds a 20% stake in Pekao, Poland's second biggest lender.
The companies aim to complete the possible deal by the end of June 2026, which they said could free up about 15 billion to 20 billion zlotys ($4 billion to $5.3 billion) of the group's capital surpluses.
($1 = 3.7460 zlotys)
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