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Merger of PZU and Pekao. The schedule is out of date
“I cannot clearly confirm this” – answered the Minister of State Assets Wojciech Balczun on TOK FM radio when asked whether the creation of a financial and insurance group based on PZU and Bank Pekao will be finalized during this term of the Sejm.
“The schedule was adopted in the first memorandum, but it is out of date due to the complexity of the process. Expert teams are working, we know that this is a complex process requiring amendments to four acts. There is no final scenario because I am waiting for the team's recommendation,” he added.
See also: What next with the merger of PZU with Bank Pekao and the creation of a giant on the Polish financial market? The first interview of the new head of PZU
This is a very strong statement by the minister, considering that experts indicate that only carrying out this transaction this year would allow for the maximum use of synergies resulting from the merger.
The merger of PZU and Pekao is in question. This is how the stock market reacts
After the publication of the minister's conversation on TOK FM radio, the stock exchange shows nervousness among holders of PZU and Pekao shares. Shares fell by about 1 percent. compared to Tuesday.
Merger of PZU and Pekao. “An unprecedented transaction”
“We are in a process that arouses great emotions, the so-called Danish compromise. There is an ongoing discussion on this subject, a steering committee has been established, and there are expert teams between PZU and Pekao. This is a very complex and unprecedented transaction that no one has ever carried out on such a scale before” – said the minister in an interview.
Takeover of PZU by Bank Pekaoi.e. the so-called the Danish compromise is expected to generate from PLN 15 to 20 billion of capital surplus. For state-controlled companies, it is an escape from EU regulations, which will lead to a significant shrinkage of the insurer's capital. All because he is a shareholder of two banks.
Until recently, it seemed that President Karol Nawrocki may be the biggest risk for the transaction. The merger can become a fact if there are changes to as many as four acts and the head of state must sign them.
However, already in mid-September, investors were surprised by the Ministry of Finance (MF), which prepared changes to the regulations. At the request of Deputy Minister of Finance Jurand Drop, responsible for, among others, for regulations for financial markets, legislative work was suspended, a draft laws were dropped from the agenda of the Standing Committee of the Council of Ministers. A letter regarding this matter was sent on September 23i.e. two days before the planned committee meeting.
The legislative process started again after almost a month's delay.
