Poland’s PZU and Bank Pekao to Merge and Form a European Financial Powerhouse by 2026
PZU and Bank Pekao Sign Memorandum for Merger That Could Unlock €4.7 Billion in Capital and Reshape Poland’s Financial Sector
Poland’s largest insurer PZU and one of its leading lenders Bank Pekao have signed a memorandum of understanding to explore a full-scale merger by mid-2026, aiming to create one of Europe’s most significant financial institutions.
The plan, unveiled by both companies and backed by the Polish government, envisions consolidating PZU’s holding structure with Bank Pekao in a transaction that could unlock €4.7 billion in Tier-1 capital, potentially enabling up to €47 billion in new credit portfolios, according to Polish Finance Minister Andrzej Domański.
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Under the current structure, PZU owns 20% of Bank Pekao, while the Polish Development Fund (PFR) controls 12.8%. The state holds 34.2% of PZU, making this a state-influenced move toward financial system consolidation.
The transaction will involve splitting PZU into a holding company and a separate operational insurance business. The holding company will then merge with Bank Pekao, which will serve as the lead entity in the newly formed financial group.
If completed, the merged entity would be listed as a single company on the Warsaw Stock Exchange, expected to yield greater liquidity, transparency, and market value. Both PZU and Bank Pekao will retain their core brands, while aligning business operations to improve corporate governance, operational efficiency, and synergy through bancassurance models—selling insurance via banking channels.
The companies stated that the merger still requires regulatory, legal, and shareholder approvals, with technical groundwork and negotiations expected to unfold over the coming months. They also announced a joint strategic review regarding Alior Bank, in which PZU currently holds a 31.91% stake. As of the latest trading session, shares of PZU dropped by 0.62%, while Bank Pekao declined by 3.74%, reflecting market caution amid the transformative but complex proposal.
If realized, the merger would create a diversified financial group with strong dividend potential, greater access to capital markets, and increased competitiveness on the European stage.
