Poland’s financial markets regulator said today it will use UniCredit SpA (UCG)’s investment in its local unit Pekao SA as a yardstick for evaluating Banco Santander SA (SAN)’s agreement to combine its Polish business with KBC Groep NV (KBC)’s Kredyt Bank SA. (KRB)
“Due to the size of the bank after this potential merger, we will use the functioning of the UniCredit Group in Poland as a benchmark for evaluating the transaction and investment commitments” of Bank Zachodni SA, which is 96 percent owned by Santander, the Warsaw-based Financial Supervisory Commission said in an e-mailed statement.
In October 2007, the watchdog approved Pekao SA’s takeover its smaller rival Bank BPH SA to create what was then Poland’s biggest lender. The merger involved selling 200 BPH branches and the bank’s brand to General Electric Co.’s finance arm as one of the conditions for the deal.
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