PZU to Sell $1 Billion Polish Bank Stake in First Tusk-Era Deal

  • Shares in all three state-controlled stocks gain on proposal
  • Deal may lead to full merger between Pekao and Alior Bank

A PZU bank branch in Warsaw on Nov. 14, 2022

Photographer: Damian Lemański/Bloomberg

Poland’s biggest insurer PZU SA plans to sell a nearly $1 billion stake in Alior Bank SA to Bank Pekao SA in the first major corporate transaction overseen by Prime Minister Donald Tusk’s year-old government.

PZU and Pekao — the country’s second-largest lender — signed a non-binding letter of intent regarding the sale on Monday, the companies said in regulatory filingsBloomberg Terminal. The planned deal involving three government-controlled firms seeks to eliminate a situation where an insurer effectively controls two major commercial banks. The shares of both the planned buyer and seller advanced on the news.