PFR head: Pekao should consider supermerger with PKO

According to the president of the state-run Polish Development Fund (PFR) Paweł Borys, two of the largest state-run lenders Pekao and PKO should consider a merger in order to compete with rivals outside Poland amid expected consolidation in Europe’s banking sector. “There is an example of a merger between Santander and Bradesco in Spain. Afterward, Santander started its successful international expansion. The question is do we want a Polish bank to take part in consolidation on the European market,” he said in an interview with Reuters. Pekao, in which PFR has a 12.8 percent stake is currently analyzing the possibility of merging with another state-controlled bank, Alior. Its result might either block the merger with PKO or greenlight it. “When deciding about the merger with Alior, we’re taking a decision regarding whether the merger with PKO may go ahead. If the decision is to merge Pekao with Alior, it closes the way to a merger with PKO. If not, then one can decide in favor of a PKO/Pekao merger or not,” Borys explained.