Warsaw (Puls Biznesu) – The bigger Pekao wants to be the biggest bank in the region. Bank BPH whose 200 outlets will be acquired by the giant has a chance to win back the position of Poland’s third largest bank.
The split of Bank BPH, the sale of its smaller part to an investor and the merger of the bigger part with Pekao will start and end next year. In April, the GSM of both banks will make decisions concerning the division and merger.
“In June, Pekao will be able to issue shares for Bank BPH shareholders. In the third quarter, the transaction will be legally concluded. Till the end of next year, the operational integration should take place”, Luigi Lovaglio, Pekao deputy CEO responsible for the merger said.
In the first half of 2007, preparations will be made to choose the investor for the so called mini-BPH, or BPH-200 as its management calls it. The transaction should take place in the second half of the year.
The bigger Pekao will acquire the corporate banking from BPH. BPH-200 will keep the headquarters, 200 outlets and their employees as well as the operating system. The remaining 285 outlets with the employees, 200 franchise outlets, corporate outlets and part of the headquarters will go to Pekao.
“Pekao will take over the part of the headquarters responsible for outlet management, corporate network and the business it acquires”, Jozef Wancer, BPH CEO said.
Pekao will also acquire retail clients and SMEs who have their accounts in the acquired units.
“Part of BPH companies will also be taken over, including the leasing firm, the mortgage bank and the brokerage”, Jan Krzysztof Bielecki, Pekao CEO said.
“Next to retail clients and SMEs from the units, BPH 200 will also be able to serve corporate clients (new ones). The chain gives a chance for quick growth so that the bank can reach higher and higher positions and come back to the third place it is occupying now”, Jozef Wancer said.
He is convinced that with a new investor such a comeback is possible. After the split, BPH 200 will be the 11th or 12th largest bank in Poland as far as assets are concerned.
Pekao is the one who takes advantage thanks to the merger.
“We estimate that the synergies in 2009 will amount to PLN 240m (EUR 62.9m)”, Jan Krzysztof Bielecki said.
He stressed that after the merger his bank will not only be the largest bank in Poland but also in the region. If the merger was conducted today, the bank would have EUR 14.7 billion of market capitalization, more than Austrian Raiffeisen International, Polish PKO BP or Hungarian OTP.
(PLN 1 = EUR 0.262)