Nordea's acquisition of LG Petro Bank set to cost around zl. 467 million

Scandinavian banking group Nordea intends to announce a call to buy the shares of LG Petro Bank (LG PB) for zl 21 per share, and then to merge it with Nordea Bank Polska. For several weeks the average market price of LG PB shares has been well below this level, so Nordea intends to announce a call now, and not in November as was the original plan. Nordea has signed conditional agreements with LG PB shareholders including the Korean concern LG, PKN Orlen, Energetyka Poznanska as well as KWB Belchatow. This allows the Scandinavian banking group to purchase a 91.5% stake in LG BP from the shareholders. The cost of the takeover is close to zl. 467 million. According to Thomas Neckmar, the Nordea group regional director, the actual merger between the two banks will begin by next year at the latest. "Three years down the road we should achieve savings of zl. 34 million," said Neckmar. The economies are seen as the main benefit arising out of the merger. (Puls Biznesu, p. 8) A.Z.