Biznes Fakty
PZU and Pekao. Merger of giants in Poland. Ministers of finance and assets speak out
PZU and Pekao are gearing up for a merger – the firms declared this in announcements made on Monday. According to Finance Minister Andrzej Domański, the merger could stimulate additional credit activities on a scale akin to the National Reconstruction Plan. In the view of Minister of State Assets, Jakub Jaworowski, this development „is of a groundbreaking nature”.
On Monday, PZU and Bank Pekao formalized a memorandum of cooperation to explore a potential merger transaction by June 30, 2026.
The primary objectives are to streamline the group structure, enhance the efficiency of bancassurance (the partnership between banks and insurance companies), and achieve revenue synergies. The companies anticipate that the prospective transaction, contingent on various conditions and necessary approvals, will free up a capital surplus of up to PLN 20 billion.
PZU and Pekao merger on the horizon
– I welcomed today's partnership agreement between PZU and Pekao – stated Finance Minister Andrzej Domański during the European Financial Congress in Sopot on Monday.
He noted that the proposed merger could potentially liberate PLN 20 billion in capital, which would enable the creation of credit activities amounting to as much as PLN 200 billion.
As per the Finance Minister, this would lead to a „significant increase in potential credit availability,” allowing for the doubling of the current investment loan balance for businesses in Poland. He added that this credit initiative would be comparable in scale to the National Reconstruction Plan, which is set to enter the market following the completion of the KPO investment.
– Essentially, it’s as if a new entity is emerging in the market, equivalent to the current third-largest bank in Poland, equipped with capital, infrastructure, and experience, yet has not issued a single loan – the Finance Minister pointed out. Domański also affirmed that the Ministry of Finance will „actively support” the efforts to finalize the agreement between the two companies.
A „new mass of credits” will be created
State Assets Minister Jakub Jaworowski also shared his thoughts on the merger of PZU and Pekao announced on Monday. He remarked at the conference that this event „is of a groundbreaking nature” and has the potential to propel the Polish financial market „forward dynamically” while creating substantial value for clients, shareholders, and the economy.
– I am referring to PZU and Pekao embarking on the path of establishing a robust bancassurance entity, a new structure that will position the bank at the forefront of the group, thereby resolving the unhealthy and unprecedented scenario where an insurer manages two competing banks (PZU holds nearly 32% of Alior shares) – asserted the head of MAP. He noted that he has been deeply involved in the discussions and supported the decision aimed at executing this agreement. He assessed it as a positive step forward.
– The new structure will create a new wave of loan opportunities – Jaworowski highlighted.
He also reminded attendees that the anticipated shift in the relationship between PZU and Pekao „under certain conditions and with regulatory approval” will entail the application of „different capital requirements than before.” He expressed that this presents an opportunity for both companies, the market, and Poland. – It’s a chance to forge a new powerful national champion. But a champion firmly grounded on sound, rational economic principles – remarked the head of MAP.
State Treasury-controlled PZU holds 20 percent of Pekao shares, while the state-owned Polish Development Fund owns an additional 12.8 percent.
