DLA Piper Poland has been acting as the legal adviser to Banco Santander S.A. (“Santander”), which announced today that it has entered into an investment agreement with KBC Bank NV to combine their Polish banking subsidiaries, Bank Zachodni WBK S.A. (“Bank Zachodni WBK”) and Kredyt Bank S.A. (“Kredyt Bank”).

Bank Zachodni WBK and Kredyt Bank, with the support of their parent companies, Santander and KBC, have also reached an agreement regarding cooperation with respect to the proposed merger.

The combined bank’s total pro forma value will be PLN 20.8 billion (EUR 5 billion).

This transaction is the second stage of the advisory services which DLA Piper has provided to Santander during its acquisition activity in the Polish banking sector. In 2011 DLA Piper advised Banco Santander on its acquisition of BZ WBK from Allied Irish Banks plc. 

Upon the management boards of the Polish banks agreeing the merger plan, and subject to regulatory and antitrust approvals and the final terms of the merger being agreed, Bank Zachodni WBK will merge with Kredyt Bank. The transaction will entail a share capital increase in Bank Zachodni WBK, with the newly issued shares in Bank Zachodni WBK to be offered to KBC and the other shareholders of Kredyt Bank in exchange for their shares in Kredyt Bank.

“I consider this as a great achievement for the firm to be part of yet another milestone transaction in the banking sector over the last two years” said Krzysztof Wiater, the Country Managing Partner of DLA Piper in Poland. “I wish Santander and BZ WBK every success in their further endeavors”.

DLA Piper’s international team was led by Krzysztof Wiater, Country Managing Partner of DLA Piper Poland, and Juan Picon, Country Managing Partner of DLA Piper Spain and International Head of Corporate. The supporting team was comprised of Associates Jacek Giziński, Michał Pawłowski, Rafał Woźniak and Anna Wietrzyńska from the Warsaw office, as well as Partners Jose Maria Jimenez-Laiglesia and Juan Jimenez-Laiglesia from the Madrid office.