Islandsbanki enters early merger discussions with Kvika banki

Islandsbanki hf

10/02/2023 10:01

COPENHAGEN, Feb 10 (Reuters) - Icelandic bank
Islandsbanki  ISB.IC  has entered preliminary discussions with
smaller lender Kvika banki  KVIKA.IC  on a potential merger, it
said in a statement late on Thursday. 
    "The board of directors believes that a combination of the
two companies could offer opportunities for increased
operational efficiency and value creation," Islandsbanki said
without disclosing any financial details. 
    Islandsbanki, among the country's three largest banks, said
a merger would increase its balance sheet by close to 20%.
    Such a deal would be subject to regulatory and shareholder
approval. 
    Kvika banki proposed the merger last week. 
 (Reporting by Nikolaj Skydsgaard
Editing by David Goodman
)
 ((Nikolaj.Skydsgaard@thomsonreuters.com;))