Nordea signs deal to take control of LG Petro Bank

Scandinavian banking group Nordea has signed an initial agreement with South Korean LG to acquire a controlling stake in LG Petro Bank (LGPB). LGPB's stock reacted with a sharp drop after investors found out that Nordea plans to pay them no more than zl. 21 per share in a public bid yet to be announced. Nordea will buy LG's 54.3% stake in LGPB, but on the condition that it will acquire another 35.7% of shares from other investors, paying them zl. 21 per share, so as to give Nordea 90%. Nordea's regional director Thomas Neckmar said that the merger of the two banks, to be conducted by the end of the year, would create the 15th largest bank in Poland with 50 of its own branches and 17 LG Habitat outlets specializing in servicing housing loans. Nordea would focus on servicing Scandinavian businesses and small and mid-sized companies, as well as middle- and high-income individuals. (Puls Biznesu, p. 8; Rzeczpospolita, p. 1) T.J.