KNF gives PZU green light to acquire Alior Bank

Polish financial watchdog KNF has approved the transaction of purchasing over 25 percent stake of Alior bank by insurer PZU. PZU purchased 25.25 percent stake in commercial lender Alior Bank from its lead shareholder Carlo Tessara for PLN 1.635 billion. In August, anti-monopoly watchdog UOKiK approved the transaction. Andrzej Klesyk, CEO of PZU, said that Alior Bank is "one of the most interesting bank assets in Poland and Europe" and will remain so."The purchase of Alior is the first step in a process which I hope in the coming eighteen months to two years in Poland [will be the] consolidation of the banking sector," said Klesyk. "I hope we will create a bank that will have aspirations to the top five in Poland." The insurer revealed that it plans further purchases and is in talks to acquire two more banks with one of the deals expected to be closed before the end of the year. Raiffeisen Polbank and GE unit BPH are known to be on the auction block. PZU had submitted an offer to purchase the Polish unit of Raiffeisen Bank International (RBI) which is worth below its book value, Reuters reported in July.