January 17, 2019 / 5:04 PM / 9 months ago

Poland's Idea Bank to merge with Getin Noble in all-share deal

(Reuters) - Poland’s Idea Bank (IDE.WA) has agreed to buy rival Getin Noble Bank (GNB.WA) in an all-share deal to create the country’s seventh largest bank.

The banks said in a joint statement that Getin shareholders would receive 0.185 new Idea shares for each of their Getin stock.

They will aim to achieve synergies of 370 million zlotys ($98 million) in 2019-2021, and annual synergies of 180 million zlotys starting from 2021. Total integration costs will amount to 220 million zlotys, the banks said.

“In parallel, in December 2018 the banks launched a process to find a financial investor to recapitalize the merged bank to cover capital shortfall and enable further growth”, they said.

The banks plan to make savings by consolidating their headquarters and overlapping branches, and integrating IT systems.

The deal is expected to close in the third quarter of 2019.

Reporting by Katarzyna Zajaczkowska; Editing by David Goodman and Mark Potter

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