Icelandic bank Islandsbanki has entered preliminary discussions with smaller lender Kvika banki 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.
Source: Reuters.com